Credit Portfolio versus Loan Portfolio

From Open Risk Manual

Credit Portfolio versus Loan Portfolio

The two terms are used some time interchangeably but more accuracy is required when the types of Lending products involved in a portfolio varies. A loan portfolio is best understood as a subset of the broader credit portfolio class that only involves loans.



  • Despite the potentially significant differences, a unifying feature of all credit portfolios is that the core underlying risk is the credit risk of borrowers
  • The machinery for the quantitative analysis of credit portfolio risk is broadly similar