For some, this objection is almost akin to a religious belief, and those readers I do not expect to convince. For others, this article may fill in some gaps and provide a few insights about credit and related risks that are not so intuitive.So let’s walk through some basic concepts about credit, credit risk and how it affects our portfolio expectations:Credit risk is the risk of lending money to a company and not getting paid back. It is basically betting that a company will stay in business indefinitely and pay its debts and other bills as they come due.
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