Ways to Manage Counterparty Risk
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Counterparty risk is the chance that the other party in a financial transaction may not meet their obligations. It can occur in loans, derivatives and trading contracts with banks, insurers, or other institutions. Managing this risk can reduce potential losses through strategies like evaluating counterparties, using collateral agreements and working with third-party clearinghouses. A financial […] The post Ways to Manage Counterparty Risk appeared first on SmartReads by SmartAsset.
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