Terminology - Mutual Fund - Credit Risk - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Sunday, April 17, 2016

Terminology - Mutual Fund - Credit Risk


Terminology - Mutual Fund - Credit Risk


 “Credit risk is the risk of loss of principal or / loss of a financial reward stemming from a borrower's failure to repay a loan or / otherwise meet a contractual obligation. 

Credit risk arises whenever a borrower is expecting to use future cash flows to pay a current debt. 

Investors are compensated for assuming credit risk by way of interest payments from the borrower or issuer of a debt obligation.

Credit risk is closely tied to the potential return of an investment, the most notable being that the yields on bonds correlate strongly to their perceived credit risk.”


Src: Investopedia
Terminology - Mutual Fund - Credit Risk Reviewed by S. Chitra on April 17, 2016 Rating: 5 Terminology - Mutual Fund - Credit Risk  “Credit risk is the risk of loss of principal or / loss of a financial reward stemming from a bo...

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