# Credit Risk

*Risk & Portfolio — Finicade finance glossary*

The risk a borrower fails to pay you back. It's what credit spreads, ratings and default models all try to price — and what a lender is really being paid to take on.

**Related terms:** [Default](https://finicade.com/glossary/default), [Credit Spread](https://finicade.com/glossary/credit-spread), [Counterparty Risk](https://finicade.com/glossary/counterparty-risk)

**Taught in:** Hull Street — Credit Derivatives & 2008

Source: https://finicade.com/glossary/credit-risk