ERM Glossary: Loss given default (LGD)
[this page | pdf | references | back links]
The loss given default (LGD) is
the estimated loss that will arise if a counterparty (e.g. a customer)
defaults. It would generally be calculated after taking account of credit risk
mitigation and would include the costs of recovering any value from the
outstanding debt.
NAVIGATION LINKS
Contents | Prev | Next