/

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


Desktop view | Switch to Mobile