Credit Risk [3]

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Bullet points include: Risk that the creditworthiness of a name or counterparty to which an entity is exposed declines, causing the entity loss: Should credit risk: Be deemed to include only default risk, or also to include, Ratings migration and/or spread risk? Is spread risk (yield spread versus e.g. equivalent risk-free bonds): A form of credit risk (i.e. defining credit risk as risks associated with credit instruments), or A form of market risk (i.e. defining market risk as anything relating to movements in market prices whatever the instrument type)?

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