"Counterparty" Example Sentences
1. The bank assigned a dedicated team to oversee all counterparty transactions.
2. In a derivative contract, each party is equally responsible for assessing the risks posed by the counterparty.
3. The creditworthiness of a counterparty is a crucial factor in determining lending rates.
4. The brokerage firm has a strict due diligence process for vetting new counterparty relationships.
5. The counterparty failed to meet its contractual obligations, resulting in a legal dispute.
6. Some large investment banks use algorithms to monitor counterparty exposures in real-time.
7. Each counterparty in the bilateral agreement bears a portion of the credit risk.
8. A credit default swap allows for the transfer of counterparty credit risk from one party to another.
9. A collateralized debt obligation is a type of security that pools assets and distributes credit risk among multiple counterparties.
10. The counterparty risk associated with currency exchange exposes international businesses to significant financial volatility.
11. Investment managers must continually monitor and adjust their portfolio strategies in response to counterparty risk.
12. The counterparties in a foreign exchange swap agree to exchange a set amount of currency at a specified exchange rate on a future date.
13. A credit rating agency provides an independent assessment of a counterparty's financial health.
14. The counterparty's poor credit rating forced the bank to increase its reserves against potential losses.
15. The collapse of Lehman Brothers highlighted the dangers of counterparty risk in the financial system.
16. The counterparty's bankruptcy triggered a clause in the bond contract that accelerated repayment of the debt.
17. A credit-linked note is a type of bond that transfers counterparty credit risk to investors.
18. As part of its risk management framework, the bank sets exposure limits on counterparty risk.
19. Global regulators have introduced measures to reduce the systemic risk associated with counterparty defaults.
20. The counterparty's failure to repay the loan led to a loss for the lender.
21. The bank uses a sophisticated modeling approach to estimate potential losses from counterparty defaults.
22. A repurchase agreement involves the sale of securities with an agreement to buy them back from the same counterparty at a future date.
23. The bank's collateral management team maintains accurate records of counterparty pledges to ensure timely return of assets.
24. The risk-weighted asset approach assigns different levels of capital requirements based on the counterparty's credit risk.
25. The bank's board of directors reviews its counterparty exposure regularly to ensure compliance with internal risk management policies.
26. A credit insurance policy can provide protection against counterparty defaults.
27. The counterparty's bankruptcy wiped out the value of the investment portfolio.
28. A clearinghouse serves as a central counterparty to ensure that all parties fulfill their contractual obligations.
29. The counterparty's unauthorized trading activity resulted in significant losses for the bank.
30. The bank's risk officers conduct stress tests to assess the potential impact of counterparty defaults on the institution's capital and liquidity.
Common Phases
1. The
counterparty in this transaction is the seller;
2. We need to ensure that the
counterparty is creditworthy before entering into any agreement;
3. The
counterparty has agreed to the terms and conditions of the contract;
4. It is important to establish a good relationship with your
counterparty;
5. We have identified a potential
counterparty for the project;
6. The
counterparty's failure to fulfill their obligations led to the termination of the contract;
7. Both parties must agree to the terms of the contract for it to be binding on the
counterparty.