Hilahin para mailagay sa tamang posisyon ang cover
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Default risk assessment
A lender's default risk is the risk that a borrower may fail to make necessary payments on a financial obligation, such as a loan, bond, or credit card. In almost every type of loan offering, lenders and investors face default risk. Borrowers with a higher level of default risk often pay a higher interest rate. Consumers' default risk may be assessed using their credit history and ratings. Rating agencies assess firms' and governments' default risk, as well as the bonds they issue. Borrowers with a high default risk often pay higher rates of interest.
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