exposure at default


EAD. The expected amount of loss that a bank would be exposed to when a debtor defaults on a loan from that bank. To get an idea of their risk, banks will often calculate an EAD value for each loan, and use those resulting figures to get an idea of their overall risk.

Related Terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
exposure loss given default