When we value long-term debt, it is important to take defaultrisk into account.
Principles of Corporate Finance (1991)
Because of the lack of liquidity and higher defaultrisk, the bank earns its highest return on loans.
Financial Markets, Institutions and Money (1995)
The key to managing defaultrisk lies in the dependable repayment capacity overtime of the borrower.
Times, Sunday Times (2014)
Definition of 'risk'
risk
(rɪsk)Explore 'risk' in the dictionary
variable noun [NOUN that]
If there is a risk of something unpleasant, there is a possibility that it will happen.
Definition of 'default'
default
(dɪfɔːlt) (diːfɔːlt)Explore 'default' in the dictionary
verb
If a person, company, or country defaults on something that they have legally agreed to do, such as paying some money or doing a piece of work before a particular time,they fail to do it.