Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
They have a credit risk, that you won't pay. Only after you don't pay do they get to liquidate your collateral. Then they have liquidity risk.

Then again, some people say "all risk is liquidity risk".

There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman

by Migeru (migeru at eurotrib dot com) on Tue Mar 13th, 2012 at 04:39:25 PM EST
[ Parent ]

Others have rated this comment as follows:

Display:

Top Diaries

Democracy on trial

by IdiotSavant - Feb 14
6 comments

A Special Place in Hell

by Frank Schnittger - Feb 14
40 comments

Ingeniería Una Revolución

by Oui - Feb 7
14 comments

Trust

by Frank Schnittger - Jan 31
53 comments

Black-Ops Mercenaries On the Internet

by Oui - Jan 31
14 comments

Occasional Series