Transactions with a private buyer typically carry more risk than those involving a public buyer, which generally refers to a government-backed entity.
For example, a private buyer might be a company that is purchasing the mortgage of a property. Because the company is not backed by the government, it does not have the "full faith and credit" that a governmental organization would. If the company fails to make mortgage payments, the party that sold the mortgage will not have the recourse of seeking payment from the government.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
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