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default risk

   Also found in: Wikipedia 0.04 sec.
Default Risk
The risk that companies or individuals will be unable to pay the contractual interest or principal on their debt obligations.

Notes:
In other words, this is the risk that you will not get paid.

Default risk
The risk that an issuer of a bond may be unable to make timely principal and interest payments. Also referred to as credit risk (as gauged by commercial rating companies).
default risk
The possibility that a borrower will be unable to meet interest and/or principal repayment obligations on a loan agreement. Default risk has a significant effect on the value of a bond: if a borrower's ability to repay debt is impaired, default risk is higher and the value of the bond will decline.
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Indymac Bank has promoted Alex Cole to vice president of business development for the home construction lending division and Carla Wise to senior vice president of default risk management.
Indymac Bank by Takahashi, Jade / Los Angeles Business Journal
Mortgage lenders in California are more critically scrutinizing loan applications now because of higher default risk resulting from a shift in sales patterns as the real estate market nears the end of its boom cycle, an industry tracker said Monday.
HIGHER RISK HAS LENDERS WARY DEFAULT LEVELS RISE IN PARTS OF ... by Daily News (Los Angeles, CA)
Both the stochastic interest rate and the stochastic default risk are modeled as a square-root diffusion process.
Defaultable puttable/callable bond valuation: a 3D finite difference ... by Chou, Heng-Chih / Journal of Academy of Business and Economics
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