e***z
发帖数: 7126 | | O****e
发帖数: 5061 | 2 The risk to each party of a contract that the counterparty will not live up
to its contractual obligations. Counterparty risk as a risk to both parties
and should be considered when evaluating a contract.
In most financial contracts, counterparty risk is also known as "default
risk".
Investopedia Says Investopedia explains 'Counterparty Risk'
Because A is a counterparty to B and B is a counterparty to A both are
exposed to this risk. For example if Joe agrees to lends funds to Mike up to
a certain amount, there is an expectation that Joe will provide the cash,
and Mike will pay those funds back. There is still the counterparty risk
assumed by them both. Mike might default on the loan and not pay Joe back or
Joe might stop providing the agreed upon funds. | e***z
发帖数: 7126 | 3 对的
up
parties
to
【在 O****e 的大作中提到】
: The risk to each party of a contract that the counterparty will not live up
: to its contractual obligations. Counterparty risk as a risk to both parties
: and should be considered when evaluating a contract.
: In most financial contracts, counterparty risk is also known as "default
: risk".
: Investopedia Says Investopedia explains 'Counterparty Risk'
: Because A is a counterparty to B and B is a counterparty to A both are
: exposed to this risk. For example if Joe agrees to lends funds to Mike up to
: a certain amount, there is an expectation that Joe will provide the cash,
: and Mike will pay those funds back. There is still the counterparty risk
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