Event Risk

Event Risk
Risk arising from the possibility that an issuer may fail to pay interest and principal because of infrequent, discontinuous, and significantly large, unexpected changes in market environment. Examples of such events include natural or industrial mishap, regulatory change, restructuring or takeover.

Related posts:

  1. Equilibrium Market Price of Risk
  2. Event Study
  3. Reinvestment Risk
  4. Regulatory Pricing Risk
  5. Economic Risk

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