General wrong-way risk

Japanese

一般誤方向リスク

Last reviewed

October 5, 2026

This is a draft, shown for review before publication.

General wrong-way risk is the risk that arises when a counterparty's PD is positively correlated with general market risk factors such as interest rates, equity prices and exchange rates, so that the counterparty's PD also rises in the scenarios where the exposure increases.