Definition for : Solvency risk
GLOSSARY LETTER
Solvency Risk is the Risk that a creditor will lose his entire Investment if a debtor cannot repay him in full, even if all the debtor's Assets are liquidated. Traders call this Counterparty risk. See also Default risk. Solvency Risk is also called Credit risk.
(See Chapter 18 Risk and return of the Vernimmen)
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