Credit risk: related pages
Junk bond A bond with a credit rating below investment grades. Many funds do not invest in junk bonds.
Credit rating Ratings of the riskiness of debt and the credit-worthiness of corporate and sovereign borrowers. They are issued by a small number of agencies.
Debt covenant An agreement between a company and its creditors that it should that the company should operate within certain limits, typically on debt levels, asset sales or gearing.
Counterparty risk The risk that a counterparty will fail to fulfil its obligations.
Yield spread The difference between the yield on a bond and the yield on a similar risk free debt instrument.
Value at risk A measure of the risk of a portfolio; the loss that is unlikely to be exceeded in a given period of time with a given level of confidence.
Copyright Graeme Pietersz © 2005-2019
