Kredietvolatiliteit

Kredietvolatiliteit refers to the measure of the fluctuation in the perceived creditworthiness of a borrower or an asset. It reflects the uncertainty surrounding the future ability of an entity to meet its debt obligations. High credit volatility suggests that the borrower's financial health is unstable, and there is a greater chance of default or a downgrade in credit rating. Conversely, low credit volatility indicates a more stable financial position and a lower perceived risk of default.

Factors influencing credit volatility can include economic conditions, industry-specific challenges, company-specific news, changes in management, or shifts in regulatory environments. For investors, understanding credit volatility is crucial for assessing risk and making informed investment decisions, particularly in fixed-income markets. Instruments like credit default swaps (CDS) are often used to hedge against or speculate on changes in credit volatility. The volatility of credit spreads, which is the difference in yield between a risky bond and a risk-free benchmark, is a common way to observe credit volatility in the market. This concept is distinct from interest rate volatility, although both can impact the overall value of debt instruments.