Investment
Riesgo de contraparte
The risk that the other party in a financial transaction may default on contractual obligations, causing financial loss. In portfolio management, it is a key risk factor in derivatives, securities lending, repo, and OTC contracts.
Quick answer: The risk that the other party in a financial transaction may default on contractual obligations, causing financial loss. In portfolio management, it is a key risk factor in derivatives, securities lending, repo, and OTC contracts.
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Quick answer
The risk that the other party in a financial transaction may default on contractual obligations, causing financial loss. In portfolio management, it is a key risk factor in derivatives, securities lending, repo, and OTC contracts.
Why it matters
Riesgo de contraparte matters because it supports clear communication in Investment contexts for Financial Analysts, Bankers, and Traders. It also connects to aviation training and exam language such as CFA, ACCA, and FRM.
Editorial context
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Definition
The risk that the other party in a financial transaction may default on contractual obligations, causing financial loss. In portfolio management, it is a key risk factor in derivatives, securities lending, repo, and OTC contracts.
Operational example
Portfolio managers must assess counterparty risk before entering into OTC derivatives to ensure compliance with internal risk limits and regulatory requirements.
Localized term
Riesgo de contraparte
Localized example
Los gestores de carteras deben evaluar el riesgo de contraparte antes de entrar en derivados OTC para cumplir con los límites internos de riesgo y las regulaciones.
Definition language
English reference definition
Source
CFA Institute, IFRS Foundation, FASB (GAAP), Basel III Framework
Target audience
- Financial Analysts
- Bankers
- Traders