The generally lower default risk of eurocurrency loans is a result of the fact that:

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Eurocurrency loans are typically made to medium-to-large corporations and governments, who are generally considered to have lower default risk than small businesses or individuals. Additionally, the Eurocurrency market is largely unregulated, but this lack of regulation does not necessarily lead to lower default risk. The denomination of the loan and the interest payment structure may also play a role in default risk, but these factors are not as significant as the creditworthiness of the borrower.

The Generally Lower Default Risk of Eurocurrency Loans Is a Result