Results for tag: "Exposure At Default"

Exposure at Default (EAD) is a banking term used to describe the amount of credit exposure a bank has to a borrower at the time of default. It is a measure of the potential loss a bank may incur if a borrower fails to meet their obligations. EAD is calculated by taking into account the amount of credit extended to the borrower, the amount of collateral held, and the expected recovery rate. EAD is an important concept in banking, as it helps banks to assess their risk exposure and manage their capital requirements. Banks use EAD to determine the amount of capital they need to set aside to cover potential losses from defaulted loans. Some companies in the Exposure at Default market include Moody's Analytics, Fitch Solutions, S&P Global Market Intelligence, and Experian. Show Less Read more