Bank HJK has granted put options on Bank PQR stock to a hedge fund and sold CDS protection on Bank PQR to a manufacturer. Bank HJK and Bank PQR are engaged in multiple overlapping business areas and regions, with their performances exhibiting a strong correlation. There is widespread market apprehension that rising interest rates might adversely affect the credit quality of Bank HJK's numerous borrowers, potentially leading to an increase in Bank HJK's credit spread. From the perspectives of the hedge fund and the manufacturer, which of the following is accurate concerning their counterparty risk exposure to Bank HJK?