EBU Single Rulebook Q&A 7 April 2015 2015_1933 QRRE loss rate

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European Union · · · 25-09-2015

What is meant by loss rate in this context? LGD is a fixed and downturn value in the capital requirement calculation. Based on the logic of the capital model the analysis of the PD volatility seems more reasonable, but it is not loss rate. Realised default rate x LGD is also a possible interpretation.

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