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

DUP decline continues

by Frank Schnittger - Aug 29
16 comments

Islamic State Khorasan Province

by Oui - Aug 24
84 comments

The American Dream

by Oui - Aug 22
29 comments

Occasional Series