A credit default swap (CDS) is a contract that protects lenders from borrower default. Learn how a CDS works, why they’re ...

Default risk in bond investing refers to the chance that a bond-issuing company or government would fail to make its debt and interest payments. As a bond investor, you can lose 100% of your ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial ...

Fannie Mae and Freddie Mac exhibit contrasting risk trajectories, while purchase loans dominate in a high-interest rate environment. Milliman Inc., a mortgage consulting and analytics firm, found that ...

The assessment of default risk is also critical in the valuation of corporate bonds and credit derivatives such as basket-default swaps. There is an important distinction between default risk under ...

Borrower credit quality and refinance activity push mortgage default risk slightly higher in Q1, prompting lenders to reassess overlays and risk exposure Milliman, a global consulting and actuarial ...

There's generally no such thing as a risk-free investment, and that's especially holds true when it comes to corporate bonds. Companies issue these debt instruments to help pay for things such as ...

A rigorous approach to determining the credit risk posed by highly leveraged counterparties is not something that is easy to develop and implement. One reason for this is the scarcity of information.

Every credit portfolio produces default rates and loss given default (LGD) rates. If the two rates respond to the same conditions then risk is greater, and this affects loan pricing, portfolio ...

Identity risk has become inseparable from credit risk. Before you can predict how someone will repay, you must be sure of who ...