In the world of finance, every loan, investment, or credit agreement carries some degree of uncertainty. The possibility that a borrower might fail to meet their obligations is known as credit risk.
Posts tagged as “Counterparty Risk”
Basics of Forwards Contracts
August 19, 2025 |
A forward contract is a private, non-standardized agreement between two parties to buy or sell an asset at a pre-agreed-upon price on a specific date in the future.
Basics of Derivative Contracts
August 19, 2025 |
A derivative contract is a financial agreement between two parties that "derives" its value from an underlying asset or benchmark.
Basics of Futures Contracts
August 19, 2025 |
A futures contract is a standardized, legally binding agreement to buy or sell a specific asset at a predetermined price on a specified date in the future. These contracts are traded on a futures exchange and are used for two primary purposes: hedging and speculation.
Off-Balance-Sheet Risk
July 16, 2025 |
Off-balance-sheet (OBS) risk refers to the potential for financial losses or liabilities arising from activities or transactions that do not appear directly on a company's balance sheet.
Stablecoin
June 19, 2025 |
A stablecoin is a type of cryptocurrency designed to minimize price volatility, unlike traditional cryptocurrencies like Bitcoin (BTC) or Ethereum (ETH) whose values can fluctuate wildly.