counterparty

Frequency: Very High

Translation

n. contracting party, trading partner.

Phrases & Collocations

counterparty risk

Example Sentences

The bank is looking for a reliable counterparty for the transaction.

It's important to establish trust with your counterparty in business dealings.

The contract specifies the rights and obligations of each counterparty.

Both parties need to agree on the terms before becoming counterparties in the deal.

The counterparty failed to meet the payment deadline, causing a breach of contract.

The legal team is reviewing the agreement to ensure the protection of both counterparties.

It's crucial to conduct due diligence before entering into a transaction with a new counterparty.

The counterparty's financial stability is a key factor to consider in business partnerships.

In international trade, counterparties often negotiate terms to mitigate risks and uncertainties.

The success of the collaboration depends on effective communication and mutual trust between counterparties.

Real-world Examples

He also thinks the Treasury market should be centrally cleared, so that a single institution stands between buyers and sellers, taking counterparty risk.

Source: Economist Finance and economics

Regulators have also tried to reduce opacity and counterparty risk—the channels through which fears about Lehman morphed into suspicion of the entire banking system.

Source: Economist Finance and economics

And so, the Souther family has been just a perfect counterparty to work with because they're well respected in the community and they've been super enthusiastic about the project.

Source: VOA Standard English_Americas

Until March 1st, when names were released of the seven Russian lenders potentially blocked from the SWIFT interbank-communications system, many energy-related transactions in Russia were halted, traders said, owing to the counterparty risk.

Source: The Economist (Summary)

Credit-default swaps are bilateral contracts where one counterparty agrees to insure the other against the loss due to default on a specified bond, in exchange for a fixed stream of payments.

Source: Economist Finance and economics

The interesting thing is, though, that a lot of times the counterparty is private equity, so you can also have a little bit of room to, like, not cut each other breaks.

Source: Financial Times Podcast

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