Probability of Default (PD)

Category: Credit Risk · Abbreviation: PD

What is Probability of Default?

Likelihood that a borrower will be unable to meet scheduled debt payments over a specified time period.

Related terms

• Credit Risk
• LGD
• EAD

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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