principal risk definition

principal risk means the risk that a counterparty will lose the full value involved in a transaction, i.e. either the risk that a seller of a financial asset will irrevocably deliver the asset, but not receive payment, or the risk that a buyer of a financial asset will irrevocably pay for, but not receive the asset;
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principal risk means the risk that the seller or buyer of a currency will deliver such currency or pay without the corresponding payment or delivery taking place. This excludes the interest payable on the obligation;
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principal risk means the risk of outright loss of the full value of a transaction resulting from a counterparty’s failure to settle. This can arise from an AI having paid the currency being sold but failing to receive the currency being bought in a foreign exchange transaction (also known as “Herstatt
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More Definitions of principal risk

principal risk means the risk that a counterparty will lose the full value involved in a transaction,
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Related to principal risk

  • Minimal risk means that the probability and magnitude of harm or discomfort anticipated in the research are not greater in and of themselves than those ordinarily encountered in daily life or during the performance of routine physical or psychological examinations or tests.

  • Principal Receipts has the meaning specified in Section 5.2. Pro Rata Basis has the meaning specified in Section 8.2. Put Option Agreement means the agreement between Lender and TALF LLC, pursuant to which Lender shall have the option to sell or assign from time to time, and TALF LLC shall have the obligation to purchase from Lender from time to time,

  • fall risk means any potential exposure to falling either from, off or into;

  • Principal residence means a homestead actually and

  • Risk Weighted Assets means the risk weighted assets or total risk exposure amount, as calculated by the Company in accordance with the Capital Regulations applicable to the Group.