Loss given default (LGD) is the amount of money a bank or other financial institution loses when a borrower defaults on a loan.
LGD is stated as a percentage of total exposure at the time of default. A financial institution’s total LGD is calculated after a review of all outstanding loans using cumulative losses and exposure.
Our software and prediction analysis is focused on the LGD of the underwritten portfolios. We are able to decrease LGD and identify the potential scale of LGD before it happens.