# Default

*Risk & Portfolio — Finicade finance glossary*

When a borrower fails to make a payment they owe. It's the event credit risk is all about — and its aftermath (how much lenders recover) shapes how bonds and loans are priced.

**Related terms:** [Credit Risk](https://finicade.com/glossary/credit-risk), [Credit Spread](https://finicade.com/glossary/credit-spread), [Bond](https://finicade.com/glossary/bond)

**Taught in:** Risk Arena — Credit Risk Enters the Arena

Source: https://finicade.com/glossary/default