Liquidity risk in the context of settlement risk means that the counterparty can eventually meet its obligation, but not at the due date.

Name: Liquidity risk in the context of settlement risk means that the counterparty can eventually meet its obligation, but not at the due date.
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Liquidity risk in settlement risk refers to the risk that a counterparty may be unable to make payment on the due date because of a lack of liquidity, but can eventually meet its obligation.

Liquidity Risk in the Context of Settlement Risk Means That