Regulation standards such as Basel III and Dodd-Frank Act require financial institutions to perform multiple risk calculations and modeling techniques such as VaR, expected shortfall, loss given default, exposure at default and CVA, in order to accurately report on the business' capital, liquidity, counterparty, credit and market risk to regulatory bodies.
What does EAD stand for?
EAD stands for Exposure At Default
This definition appears very frequently and is found in the following Acronym Finder categories:
- Business, finance, etc.
See other definitions of EAD
We have 130 other meanings of EAD in our Acronym Attic
- Euro Arab Dialogue (diplomacy)
- Europe Algérie Développement (French: Algeria Europe Development)
- European Aeronautical Database
- European AIS (Aeronautical Information System) Database (European Organization for the Safety of Air Navigation)
- Executive Agent Developer
- Executive Assistant Director
- Executive Associate Director
- Expected Award Date
- Expenditure Authorization Document
- Export Accompanying Document (various locations)
- Extended Active Duty
- Extended Air Defense
- External Affairs Director
- Echelons Above Division - Expanded
- Early Americas Digital Archive
- English Amateur Dancesport Association
- Equity in Athletics Disclosure Act
- Erythrocyte Adenosine Deaminase (enzyme)
- Escuela de Alta Dirección y Administración (business school)
- European-African Development Association (Vienna, Austria)
Samples in periodicals archive:
probability of default (PD), loss given default (LGD) and exposure at default (EAD).
Credit risk models and solutions designed to enhance clients' internal credit rating systems and provide tools for their credit portfolio analysis, including the analysis of probability of default, loss given default, and exposure at default.
Tools within Algorithmics' fully integrated Algo Credit and Algo Capital solutions will be used to calculate benchmark exposure at default (EaD), recovery rate and loss given default (LGD) values for each exposure.
Under the Basel II rules, banks using the advanced "internal rating based" (IRB) approach can use their own estimates of credit risk -- measured using probability of default (PD), loss given default (LGD) and exposure at default (EAD) -- as primary inputs to determining minimum capital requirements.
In an effort to further assess the impact of Probability of Default model performance, Experian-Scorex combined values of Probability of Default and Exposure at Default one of the other fundamental risk inputs required under the Basel II Accord.
3 Efficient Derivation of Counterparty Exposure at Default for Trading Book Credit Risk Economic Capital - David Rowe, Dan Travers and Phillip Koop
Separation of key credit risk drivers including Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD).