The possibility that a bond issuer will default, by failing to repay principal and interest in a timely manner. Bonds issued by the federal government, for the most part, are immune from default (if the government needs money it can just print more). Bonds issued by corporations are more likely to be defaulted on, since companies often go bankrupt. Municipalities occasionally default as well, although it is much less common. also called credit risk.
Related information about default risk:
- Default Risk Definition | Investopedia
The event in which companies or individuals will be unable to make the required payments on their debt obligations. Lenders and investors are exposed to ...
- Credit risk - Wikipedia, the free encyclopedia
 Types of credit risk. Credit risk can be classified in the following way: Credit default risk - The risk of loss arising from a debtor being unlikely to pay its loan ...
- DefaultRisk.com The web's biggest credit risk modeling resource.
A central resource for managers of credit risk measurement and modeling.
- What is default risk? definition and meaning
Definition of default risk: The possibility that a bond issuer will default, by failing to repay principal and interest in a timely manner. Bonds issued by the federal ...
- Default Risk Definition & Example | InvestingAnswers
We explain the definition of Default Risk, provide a clear example of how it works and explain why it's an important concept in business, finance & investing.
- Default Risk - Financial Dictionary - The Free Dictionary
The risk that an issuer of a bond may be unable to make timely principal and interest payments. Also referred to as credit risk (as gauged by commercial rating ...
- Default Risk News - Bloomberg
Breaking news about Default Risk. Find the latest articles, videos, photos and blogs about Default Risk.
- Modeling Default Risk
Dec 18, 2003 ... Default risk is the uncertainty surrounding a firm's ability to service its .... for managing default risk in well-diversified portfolios is even more ...