counter-party risk

counter-party risk definition - finance
The probability that the other party in an investment or trading transaction may not fulfill his or her part of the deal and may default on the contractual obligations.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.