residual value risk
Noun
The risk that a lease asset can only be resold or re-leased at a price below the asset’s residual value, which is equal to the difference between the asset’s residual value set a lease inception and the lower salvage value realized at the end of the lease term.
Synonym(s):
- price risk; residual price risk; residual risk.
Leave A Comment
You must be logged in to post a comment.