cliff risk
n.— «In the credit derivatives market, certain instruments are exposed to what is known as “cliff risk.” This ominous sounding phrase describes a situation where the last in a series of adverse developments obliterates the value of what was only recently viewed as a triple-A-rated security. Up until that point, however, rating agencies, investors, and bankers assume that circumstances will eventually right themselves and that the principal will be paid in full, in spite of whatever bad news might have come along beforehand.» —“Credit Spinning Out of Control: America, a Cliff-Risk Nation” by Michael Panzner Seeking Alpha Apr. 9, 2007. (source: Double-Tongued Dictionary)
Further reading
What’s up with ketchup? The shifting history and spelling of the name of this condiment. For centuries, ketchup was a fishy sauce originating in Asia—the tomatoes came only later! Plus, a new book shows what’s lost when a language dies: when there...
Amid a 1796 heat wave, Jane Austen wrote to her sister, “What dreadful hot weather we have! It keeps me in a continual state of inelegance.” This is part of a complete episode. Transcript of “Jane Austen’s Continual State of Inelegance in a...