Risk taker, ultimate (ultimate risk taker)

The person or entity that must ultimately make payment in the event of a default. – If a loan is backed by guarantees from EMU member states, as was the case with the aid provided by the European Stabilization Mechanism, the national budgets of the countries concerned are responsible for these sums. It cannot be entirely ruled out that newly elected parliaments and resulting governments will refuse to pay. The holders of affected debt instruments – such as Greek government bonds – would then be the ultimate risk takers. To the extent that pension funds, for example, have invested in these securities, the damage would shift to those in dormancy. – See creditor priority, last-resort provision, bail-in, risk shield, risk transfer, sovereign debt, denied, asset levy.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/