Credit Risk in a sentence
Antonym: creditworthiness, reliability
Meaning: The possibility that a borrower will default on a loan or obligation; significant in finance and lending.
(1) Eurobonds are subject to both market and credit risk.
(2) The credit analyst conducted a credit risk assessment.
(3) The company's bonds payable are subject to credit risk.
(4) The loan book helps the bank assess its overall credit risk.
(5) We have a comprehensive credit policy to mitigate credit risk.
(6) The securitized debt market allows for the transfer of credit risk.
(7) The securitised securities were structured to minimize credit risk.
(8) The loan book demonstrates the bank's ability to manage credit risk.
(9) The banker's acceptance was a valuable tool for managing credit risk.
(10) Standard and Poor's is a leading authority in credit risk assessment.
Credit Risk sentence
(11) Securitization can help transfer credit risk from banks to investors.
(12) The pension fund invested in debt instruments with a low credit risk.
(13) The credit risk of investing in emerging markets can be unpredictable.
(14) The carrying value of the bond was adjusted for changes in credit risk.
(15) The discount bond's price was discounted to compensate for credit risk.
(16) The money market is characterized by high liquidity and low credit risk.
(17) The company's marketable securities are subject to potential credit risk.
(18) The loan book is a reflection of the bank's ability to manage credit risk.
(19) The debenture holder is exposed to the credit risk of the issuing company.
(20) The floating charge is a valuable tool for lenders in managing credit risk.
Credit Risk make sentence
(21) The company is assessing the credit risk associated with its counterparties.
(22) The credit system provides a framework for assessing and managing credit risk.
(23) The credit department assists in developing credit risk mitigation strategies.
(24) Investing in high-yield bonds requires a thorough understanding of credit risk.
(25) Standard and Poor's has a comprehensive methodology for evaluating credit risk.
(26) The bank's credit risk assessment revealed potential defaults on several loans.
(27) The credit department collaborates with other departments to assess credit risk.
(28) The bondholder's bonds were rated as high-yield due to the issuer's credit risk.
(29) Standard and Poor's provides independent and unbiased assessments of credit risk.
(30) A credit risk model is used to assess the likelihood of default for each borrower.
Sentence of credit risk
(31) The credit risk of a loan can be mitigated by requiring collateral or a co-signer.
(32) The bank's insolvency was a result of its failure to adequately assess credit risk.
(33) The prime rate is set by individual banks based on their assessment of credit risk.
(34) It's important to hedge off against credit risk by diversifying our loan portfolio.
(35) Credit management involves assessing the credit risk associated with each customer.
(36) The credit risk of a company can be affected by changes in the economic environment.
(37) The company's debt capital is subject to credit risk and interest rate fluctuations.
(38) Credit insurance is a valuable tool for managing credit risk in international trade.
(39) Investors should carefully evaluate the credit risk associated with corporate bonds.
(40) A thorough credit risk analysis is essential before extending credit to any customer.
Credit Risk meaningful sentence
(41) The credit risk of a loan is higher if the borrower has a high level of existing debt.
(42) The yield to maturity is influenced by factors such as interest rates and credit risk.
(43) The credit risk of lending to individuals with poor credit scores is generally higher.
(44) The company's doubtful debts reserve is adjusted based on the credit risk of customers.
(45) The credit risk of a borrower can be evaluated by analyzing their debt-to-income ratio.
(46) The credit risk of a bond is reflected in its credit rating assigned by rating agencies.
(47) The bank's credit risk department closely monitors the creditworthiness of its borrowers.
(48) The predictive value of a credit risk assessment can determine loan default probabilities.
(49) The credit manager implemented strategies to reduce the company's exposure to credit risk.
(50) Export credit insurance is a valuable tool for managing credit risk in international trade.
Credit Risk sentence examples
(51) The credit risk of investing in companies with a weak cash flow position is considered high.
(52) The yield on corporate bonds is influenced by factors such as interest rates and credit risk.
(53) The credit manager implemented credit risk assessment models to evaluate potential borrowers.
(54) The credit guarantee program aimed to stabilize the financial system by reducing credit risk.
(55) The credit analyst's role is crucial in maintaining the bank's overall credit risk portfolio.
(56) The credit risk of lending to customers with a high debt-to-income ratio is generally higher.
(57) Some derivative instruments, like credit default swaps, are used to hedge against credit risk.
(58) The credit risk of a loan increases if the borrower has a history of late payments or defaults.
(59) The yield on a debt instrument is influenced by factors such as interest rates and credit risk.
(60) The credit analyst assessed the customer's credit risk by analyzing their financial statements.
Sentence with credit risk
(61) The company's credit risk management strategy helped minimize losses during economic downturns.
(62) The credit risk of a borrower can be assessed by reviewing their credit report and credit score.
(63) The value of a debt instrument may fluctuate based on changes in interest rates and credit risk.
(64) Fannie Mae's credit risk transfer programs aim to reduce taxpayer exposure to mortgage defaults.
(65) Bond forward prices are influenced by factors such as interest rate expectations and credit risk.
(66) Some derivative instruments, such as credit default swaps, are used to hedge against credit risk.
(67) The yield on bond investment can be affected by factors such as credit risk and market conditions.
(68) Credit insurance can be a strategic tool for businesses looking to manage credit risk effectively.
(69) Investors are advised to carefully analyze the credit risk associated with any potential investment.
(70) The company's credit risk management strategy focuses on minimizing exposure to high-risk borrowers.
Use credit risk in a sentence
(71) The credit risk of a portfolio can be diversified by lending to borrowers from different industries.
(72) Fannie Mae's risk-sharing initiatives help to transfer some of the credit risk to private investors.
(73) The credit risk of lending to individuals with a history of bankruptcy is generally considered high.
(74) The credit analyst determined that the borrower had a high credit risk due to multiple late payments.
(75) The credit risk of extending credit to customers with a history of late payments is generally higher.
(76) The credit risk of investing in companies with a high level of customer churn is a cause for concern.
(77) The credit manager analyzed industry trends to assess the credit risk associated with specific sectors.
(78) The credit risk of extending credit to customers in industries with high volatility can be significant.
(79) The credit risk of lending to small businesses is often higher than lending to established corporations.
(80) The credit risk associated with lending to individuals with a poor credit score is significantly higher.
Sentence using credit risk
(81) The credit risk of lending to start-up companies is often higher due to their limited operating history.
(82) The credit risk of extending credit to customers with a low credit utilization ratio is generally lower.
(83) The credit risk of a loan can be transferred to a third party through securitization or loan syndication.
(84) The credit risk of investing in high-yield bonds is typically greater than investing in government bonds.
(85) The credit manager conducted credit risk assessments on existing customers to identify potential defaults.
(86) The credit risk of a loan can be hedged by purchasing credit default swaps or other financial instruments.
(87) The credit risk of extending credit to customers with excessive debt levels should be carefully evaluated.
(88) The credit risk of lending to countries with unstable economies is a major concern for international banks.
(89) The credit risk of investing in companies with declining revenues and profitability is a cause for concern.
(90) The credit risk of extending credit to customers with a history of fraudulent activities should be avoided.
Credit Risk example sentence
(91) The credit risk of a borrower is influenced by factors such as their credit history and financial stability.
(92) The credit risk of lending to companies in industries facing significant regulatory changes can be elevated.
(93) The credit analyst assessed the borrower's credit risk based on their outstanding debt and repayment history.
(94) The credit risk of investing in companies with a high level of outstanding debt should be carefully assessed.
(95) The credit risk of a borrower can be monitored over time to identify any changes in their financial situation.
(96) The credit risk of a borrower can be influenced by their industry's overall performance and market conditions.
(97) The credit risk of a borrower can be reduced by requiring a higher down payment or a lower loan-to-value ratio.
(98) The credit risk of extending credit to customers without proper background checks can lead to financial losses.
(99) The credit risk of a loan can be reduced by diversifying the loan portfolio across different types of borrowers.
(100) The credit risk of lending to companies with a high level of customer concentration should be closely monitored.
Sentence with word credit risk
(101) The bank's credit risk assessment determined that the borrower had a high likelihood of defaulting on their loan.
(102) The credit risk of lending to companies with a high level of inventory can be elevated during economic downturns.
(103) The credit risk of investing in companies with a high level of accounts receivable should be carefully evaluated.
(104) The credit risk of a mortgage is assessed based on factors such as the borrower's income and employment stability.
(105) The credit risk of lending to companies with a high level of contingent liabilities should be thoroughly assessed.
(106) The credit risk of investing in companies with a high level of customer defaults is a major concern for investors.
(107) The credit risk of a loan can be managed by setting appropriate interest rates based on the borrower's risk profile.
(108) The credit risk of investing in subprime mortgage-backed securities was a major factor in the 2008 financial crisis.
(109) The credit risk of a loan can be reduced by requiring the borrower to provide additional documentation or references.
(110) The bank deleverages its loan portfolio by actively managing credit risk and reducing exposure to troubled borrowers.
(111) The credit risk of a borrower can be mitigated by implementing strict underwriting standards and loan approval processes.
(112) The credit risk of a borrower can be managed by regularly reviewing their financial statements and conducting site visits.
(113) The credit risk of extending credit to customers with a high level of outstanding debt from other lenders is generally higher.
(114) The credit risk of a borrower can be influenced by external factors such as changes in interest rates or government regulations.
(115) The credit risk of a borrower can be minimized by conducting thorough background checks and verifying their financial information.
Credit Risk meaning
Credit risk is a term that refers to the potential financial loss that may occur when a borrower fails to repay a loan or meet their financial obligations. It is a crucial concept in the world of finance and banking, as it helps lenders assess the likelihood of a borrower defaulting on their debt. To effectively use the phrase "credit risk" in a sentence, it is important to understand its meaning and context. Here are some tips on how to incorporate this term into your writing:
1. Define the term: When introducing the phrase "credit risk" in a sentence, it is helpful to provide a brief definition to ensure clarity.
For example, "Credit risk, which refers to the possibility of a borrower defaulting on their loan, is a significant concern for financial institutions."
2. Use it in a financial context: Credit risk is primarily used in the financial industry, so it is important to incorporate it into sentences related to banking, lending, or investing. For instance, "Banks carefully evaluate credit risk before approving a loan application to minimize potential losses."
3. Explain its significance: Elaborate on why credit risk is important and how it affects financial institutions or individuals.
For example, "Understanding credit risk is crucial for investors as it helps them assess the potential return on investment and make informed decisions."
4. Discuss risk mitigation strategies: When discussing credit risk, it is beneficial to mention strategies or measures that can be taken to mitigate it. For instance, "Financial institutions employ various risk management techniques to minimize credit risk, such as conducting thorough credit assessments and setting appropriate interest rates."
5. Provide examples: Incorporating real-life examples can help illustrate the concept of credit risk in a sentence. For instance, "During the 2008 financial crisis, many banks suffered significant losses due to high credit risk associated with subprime mortgages."
6. Highlight its impact on the economy: Credit risk can have far-reaching consequences on the overall economy, so it is worth mentioning its impact in a sentence.
For example, "A rise in credit risk can lead to a decrease in lending, which can subsequently slow down economic growth."
7. Compare and contrast with other risks: To provide a comprehensive understanding of credit risk, it can be helpful to compare and contrast it with other types of risks, such as market risk or operational risk. For instance, "While market risk refers to the potential losses due to fluctuations in the financial markets, credit risk specifically focuses on the likelihood of borrowers defaulting on their debt obligations."
8. Use it in a cautionary context: Credit risk is often associated with potential financial losses, so incorporating it into a cautionary sentence can be effective.
For example, "Investors should carefully assess credit risk before investing in high-yield bonds to avoid potential defaults."
9. Discuss credit risk assessment tools: Mentioning tools or models used to assess credit risk can add depth to your sentence. For instance, "Financial institutions rely on credit scoring models to evaluate credit risk and determine the creditworthiness of borrowers."
10. Emphasize the importance of managing credit risk: Conclude your sentence by highlighting the significance of managing credit risk effectively.
For example, "Proactive credit risk management is essential for financial institutions to maintain a healthy loan portfolio and ensure long-term stability." By following these tips, you can effectively incorporate the phrase "credit risk" into your writing, providing a clear understanding of its meaning and implications in the context of finance and banking.
The word usage examples above have been gathered from various sources to reflect current and historical usage of the word Credit Risk. They do not represent the opinions of TranslateEN.com.