Intro credit risk: expected loan return

[brandywithice]

Thanks, So what's the difference between credit and market risk?

[brandywithice]

so what does a loan portfolio in Credit Risk consist of? peoples (customers) proposed borrowings?

[bionicturtledotcom]

yes, an individual (or) corporate loan or (traded) bond. anything that is a "promise to repay." Could also include a portion of an undrawn credit line. David

[mannyn1226]

Thank you so much! This is in fact very helpful!