This is a risk that both equity- and bondholders take when deciding to invest in a company. Aside from looking at overall profitability, analyzing a company's debt obligations and ability to repay, agencies like Moody's and Standard & Poor's attempt to determine this risk by giving bond ratings.
Investment dictionary. Academic. 2012.
Bankruptcy risk score — A bankruptcy risk score is a number that indicates the likelihood of an individual filing for bankruptcy. Although it has been used for over twenty years to assess risk in lending, few consumers know of it. It is related to the better known… … Wikipedia
Bankruptcy risk — The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. The New York Times Financial Glossary … Financial and business terms
bankruptcy risk — The risk that a firm will be unable to meet its debt obligations. Also referred to as default or insolvency risk. Bloomberg Financial Dictionary … Financial and business terms
bankruptcy remote — USA Term used to describe an entity formed to develop, own and operate a special project while isolating financial risk and minimizing bankruptcy risk, such as a single purpose entity, a special purpose vehicle (SPV) or a special purpose entity… … Law dictionary
bankruptcy-remote — USA Term used to describe an entity formed to develop, own and operate a special project while isolating financial risk and minimizing bankruptcy risk, such as a single purpose entity, a special purpose vehicle (SPV) or a special purpose entity… … Law dictionary
Risk of loss — is a term used in the law of contracts to determine which party should bear the burden of risk for damage occurring to goods after the sale has been completed, but before delivery has occurred. Such considerations generally come into play after… … Wikipedia
Bankruptcy in the United States — The United States Constitution (Article 1, Section 8, Clause 4) authorizes Congress to enact uniform Laws on the subject of Bankruptcies throughout the United States. Congress has exercised this authority several times since 1801, most recently… … Wikipedia
Bankruptcy — Notice of closure attached to the door of a computer store the day after its parent company declared bankruptcy (strictly, put into administration see text) in the United Kingdom. Bankruptcy is a legal status of an insolvent person or an… … Wikipedia
bankruptcy — Inability to pay debts. In bankruptcy of a publicly owned entity, the ownership of the firm s assets is transferred from the stockholders to the bondholders. Bloomberg Financial Dictionary Legal status of a company unable to pay creditors.… … Financial and business terms
Bankruptcy of Lehman Brothers — Lehman Brothers filed for Chapter 11 bankruptcy protection on September 15, 2008. The bankruptcy of Lehman Brothers is the largest bankruptcy filing in U.S. history with Lehman holding over $600 billion in assets. [cite web… … Wikipedia
