This refers to the total amount of money you could lose due to a default by a counterparty. When making a loan (or bond purchase), all the principal and accrued interest are at risk. The actual loss following default will depend on the recovery rate.
Latest posts by James Rabinovich (see all)
- Online Therapy: Telehealth’s Next Weapon - July 24, 2021
- Robinhood is nearing IPO - July 13, 2021
- Questrade Review Canada - July 2, 2021
Leave a Reply
You must be logged in to post a comment.