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  This leads to the disruption of elevated cash assortment and cash move. In addition, when a lender faces increased credit rating hazard, they're able to mitigate it with an increased coupon amount to make money flows.

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It's really a risk of decline due to the borrower's failure to fulfill a financial debt or repay a financial loan total. In addition, it is a threat for the lender as They could not acquire the original principal and interest sum.

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