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OHC Trade Room · Reference

OHC glossary

Every term used across the OHC Trade Room courses, defined the way we teach it. No external definitions are substituted.

terms
553
categories
10
source modules
12

553 terms A–Z

Fixed Income Advanced

Expected loss

Also known as EL

Probability of default multiplied by exposure at default multiplied by loss given default — the statistically anticipated loss on a credit exposure. A 2% PD on $1m with 40% LGD gives $8,000. Lenders use it to price loans and to set reserves.

Taught in
Module 3 — Fixed Income →
Level
Advanced — assumes working knowledge