Credit risk occurs more often in th

Credit risk occurs more often in the case of asymmetric information. From the perspective of information economics, asymmetric information refers to some of the players have countermeasures others do not have the information. This information asymmetry in time into before and after the parties signed asymmetry. Because of the reality of the transaction information asymmetry, adverse selection and moral hazard exists, so that the result seller benefits choices, there will always be conscious or unconscious generally more conducive to the seller itself, resulting in even detrimental to the buyer for breach of contract, resulting in the buyer credit risk the loss occurred.