• 2 days Markets Unfazed As Inflation Hits 13-Year High
  • 3 days How the Token Economy is Disrupting Financial Markets
  • 5 days FBI Investigating 100 Types Of Ransomware Attacks
  • 7 days Fed Ends Corporate Credit Emergency Lending Program
  • 9 days AMC Becomes the Latest Winning Meme Stock After GameStop
  • 10 days The Real Reason Your 401k Has Been Lagging
  • 11 days China Lifts Cap On Births, Allows Three Children Per Couple
  • 13 days The Market Is Ripe For Another GameStop Saga
  • 16 days Senate Grills Big Banks Over Pandemic Opportunism
  • 17 days Cannabis Has A Major Cash Problem
  • 18 days Ransomware Netted Criminals $350M In 2020 Alone
  • 19 days Russia Is Taking On Google
  • 20 days Chinese Regulators Deal Another Big Blow To Bitcoin
  • 21 days Ohio Residents Brave Vaccine for Chance To Win $1M
  • 23 days Inflation Is Coming. Are You Prepared?
  • 24 days 3 World-Shaking Trends Investors Need To Watch This Year
  • 24 days Travel Might Get Another Supersonic Disruption
  • 25 days The World Is Running Out Of 6 Key Resources
  • 26 days $15/Hour Minimum Wage Might Happen Naturally
  • 28 days Money-Laundering Binance Probe Report Adds To Bitcoin Woes
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

The Next Crisis is the Mother of all Counter-Party Risks (Part 1)

What is counter-party risk? And how many people really are aware of the consequences of systemic counter-party risk?

Counterparty risk also know as default risk is the risk to each party of a contract that the counterparty will not live up to its contractual obligations. Counterparty risk is 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, a risk that a counter-party will not pay as obligated on a bond, derivative, insurance policy, or other contract. Financial institutions or other transaction counterparties may hedge or take out credit insurance or, particularly in the context of derivatives, require the posting of collateral. Offsetting counterparty risk is not always possible, e.g. because of temporary liquidity issues, malfunctioning of markets or longer-term systemic reasons.

The Next Crisis is the Mother of all Counter-Party Risks (Part 1)

 

Read the Report

Back to homepage

Leave a comment

Leave a comment