People who are in the business of lending money or trading debt assets know that credit risk is the number one concern. When we talk about credit risk, we basically are talking about the inability of a debtor to pay
Investing, simply put, can’t be done without at least some measure of risk. In many cases, the biggest returns come with the highest levels of risk while investments that are very safe usually only provide modest returns. No matter what
Any investment comes with a certain level of risk. When lenders offer credit to consumers or businesses, the risk involved is that the borrower will not be able to repay their loan. To help offset this, hedges are investment positions