Wrong-Way Risk
What is Wrong-Way Risk?
Situation where exposure to a counterparty is adversely correlated with the credit quality of that counterparty.
Related terms
- Counterparty Credit Risk
- Correlation
More Credit Risk terms
- Collateral
- Concentration Risk
- Counterparty Credit Risk (CCR)
- Credit Risk
- Credit Value Adjustment (CVA)
- Debt Value Adjustment (DVA)
Back to the full glossary · Browse resources · See Risk Atlas in action