Replacement cost risk: The risk that a counterparty to an outstanding transaction for completion at a future date will fail to perform on the settlement date. This failure may leave the solvent party with an unhedged or open market position or deny the solvent party unrealised gains on the position. The resulting exposure is the cost of replacing, at current market prices, the original transaction.

Counterparty
Settlement
Replacement cost risk in our glossary: terms and definitions

.  Be sure to use our resources to the full!  Just follow the link below:

Replacement cost risk at globalcustody.net

  Executive briefing
© 2014 globalcustody.net
privacy | terms
HOME ABOUT US STAY
INFORMED
SUBSCRIPTION
CHOICES
JOIN
LISTINGS
ADVERTISING
& PROMINENCE
CONTACT Executive briefing