Verwertungsrisiko
German
Etymology
Verwertung (“realization/recovery”) + -s- + Risiko (“risk”)
Pronunciation
- IPA(key): [fɛɐ̯ˈveːɐ̯tʊŋsˌʁiːziko]
- Hyphenation: Ver‧wer‧tungs‧ri‧si‧ko
Noun
Verwertungsrisiko n (mixed, genitive Verwertungsrisikos, plural Verwertungsrisikoen)
- (finance, banking) recovery risk, realization risk (the risk that the proceeds from the sale of an asset or collateral will be less than its carrying amount or the amount of the secured debt)
- Bei fallenden Marktpreisen für Staatsanleihen erhöht sich das Verwertungsrisiko für die Gläubiger massiv.
- With falling market prices for government bonds, the recovery risk for creditors increases massively.
Declension
Declension of Verwertungsrisiko [neuter, mixed]
Synonyms
- Erlösrisiko (proceeds risk)
- Liquidationsrisiko (liquidation risk)
Antonyms
- Werthaltigkeit (intrinsic value/recoverability)
Hypernyms
- Finanzrisiko (financial risk)
- Kreditrisiko (credit risk)
Coordinate terms
- Basiswert (the underlying asset subject to realization)
- Beseicherung (provision of collateral)
- Gläubiger (the party bearing the risk of insufficient recovery)
- Platzierungsrisiko (risk of failing to sell a new issue, similar to realization risk)
- Zahlungsausfall (the event that necessitates the realization of collateral)
Related terms
- verwerten (to utilize/realize/sell off)
- Verwertungserlös (proceeds from liquidation)
References
- “Verwertungsrisiko” in Digitales Wörterbuch der deutschen Sprache
- “Verwertungsrisiko” in Duden online