insolvency risk


insolvency risk
1) The risk that a borrower may be unable to repay a debt.
2) The risk that a counterparty may be unable to honour a contract owing to insolvency. See counterparty risk

Big dictionary of business and management. 2014.

Look at other dictionaries:

  • Insolvency risk — The risk that a firm will be unable to satisfy its debts. Also known as bankruptcy risk. The New York Times Financial Glossary …   Financial and business terms

  • insolvency risk — The risk that a firm will be unable to satisfy its debts. Also known as bankruptcy risk. Bloomberg Financial Dictionary …   Financial and business terms

  • insolvency — The lack of adequate capital. The condition that exists when the amount of losses exceeds the amount of capital. See solvency and solvency risk. American Banker Glossary This occurs when individuals or businesses do not have enough assets to… …   Financial and business terms

  • Risk Management Exchange — The Risk Management Exchange (RMX) was a futures exchange based in Hannover, Germany which filed for insolvency in February 2009.[1] It was founded as the Warenterminbörse Hannover (Commodity Exchange Hannover, WTB) in 1998 by the German Farmers… …   Wikipedia

  • Risk-Based Capital Requirement — A stated requirement of liquid reserves placed upon banks and institutions that deal in risky ventures. These requirements exist for the protection of investors who hold an interest in these types of businesses. Governing bodies place reserve… …   Investment dictionary

  • Bankruptcy Risk — The risk that a company will be unable to meet its debt obligations. Often referred to as default or insolvency risk . This is a risk that both equity and bondholders take when deciding to invest in a company. Aside from looking at overall… …   Investment dictionary

  • Bankruptcy risk — The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. The New York Times Financial Glossary …   Financial and business terms

  • bankruptcy risk — The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. Bloomberg Financial Dictionary …   Financial and business terms

  • Settlement risk — is the risk that a counterparty does not deliver a security or its value in cash as per agreement when the security was traded after the other counterparty or counterparties have already delivered security or cash value as per the trade agreement …   Wikipedia

  • Refinancing risk — In banking and finance, refinancing risk is the possibility that a borrower cannot refinance by borrowing to repay existing debt. Many types of commercial lending incorporate bullet payments at the point of final maturity; often, the intention or …   Wikipedia


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