The chance that a counter party may fail to meet a contractual obligation on a debt instrument is referred to as:

Name: The chance that a counter party may fail to meet a contractual obligation on a debt instrument is referred to as:
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Credit risk is the risk of default by the counter party on a debt instrument, and is commonly referred to as the risk of non-payment or non-performance. Credit risk is one of the main risks associated with investing in fixed income or debt securities.

The Chance That a Counter Party May Fail to Meet