Financial Times FT.com

Counterparty risk fears re-enter mainstream

By Robert Cookson and Sarah O'Connor

Published: January 21 2008 02:00 | Last updated: January 21 2008 02:00

Until a few months ago, "counterparty risk" was something that only worried professional risk managers at major banks.

With the world awash with cheap debt, booming asset prices and the lowest default rate in a generation, the possibility that one's trading partners would not honour their financial commitments seemed remote.

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