In a derivative, credit risk and liquidity risk are the "opposite sides of the same coin."

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Credit risk is the risk that a borrower will default on a loan, while liquidity risk is the risk that a lender will not be able to sell an asset quickly enough to meet its obligations. These two risks are often considered to be opposite sides of the same coin because they both involve the potential for financial loss.

In a Derivative, Credit Risk and Liquidity Risk Are the "Opposite