sentences:  Credit analysis also includes an examination of collateral and other sources of repayment as well as credit history and management ability.Analysts attempt to predict the probability that a borrower will default on its debts, and also the severity of losses in the event of default.Credit spreads—the difference in interest rates between theoretically "risk-free" investments such as U.S. treasuries or LIBOR and investments that carry some risk of default—reflect credit analysis by financial market participants.