Loss Given Default (LGD)

Category: Credit Risk · Abbreviation: LGD

What is Loss Given Default?

Proportion of exposure that is lost when a borrower defaults, expressed as a percentage.

Related terms

• Credit Risk
• EAD
• Recovery Rate

More Credit Risk terms

• Collateral
• Concentration Risk
• Counterparty Credit Risk (CCR)
• Credit Risk
• Credit Value Adjustment (CVA)
• Debt Value Adjustment (DVA)

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