The article introduces a new model to study risks in financial transactions. Unlike previous models, this one considers how risks from the other party can affect a company's value. The researchers found that when a company faces risks from its counterpart, the cost of borrowing money goes up. The worse the other party's financial health, the bigger the impact on borrowing costs. This new model better predicts actual borrowing costs in some situations, especially when the other party is not doing well financially.