JUMOQ Learning · Expected Credit Loss (ECL)

LGD, Collateral, Recoveries, Cure and Re-default

Estimate LGD using collateral, recovery, cure and re-default evidence.

ECL-I05Intermediate

Course director: Venkata Subramani Ramachandra

3 hr 44 minFull study estimate

Full study estimate: 3 hr 44 min

Self-paced estimates for one pass through the course. Practical work includes activities, assignments and resource study. Your pace may vary; breaks and repeat attempts are extra. All course and certificate requirements still apply.

Inside this course

Select a topic to see its lessons, videos, practice activities and resources.

Course orientation

LessonCourse Overview - LGD, Collateral, Recoveries, Cure and Re-default
VideoPD, LGD and EAD fundamentals

Workout LGD Data and the Recovery Cash-Flow Framework

LessonWorkout LGD Data and the Recovery Cash-Flow Framework
VideoBuild LGD from Recovery Cash Flows
QuizKnowledge check - Workout LGD Data and the Recovery Cash-Flow Framework
Practice LabCalculate Workout LGD from Recovery Events and Costs

Collateral Values, Haircuts, Costs and Time to Realisation

LessonCollateral Values, Haircuts, Costs and Time to Realisation
VideoCollateral Is Not Recovery: Haircuts, Costs and Timing
QuizKnowledge check - Collateral Values, Haircuts, Costs and Time to Realisation
Decision MissionRecovery Strategy - Choose the Defensible LGD Approach

Cure, Re-default, Incomplete Workouts and Treatment of Open Cases

LessonCure, Re-default, Incomplete Workouts and Treatment of Open Cases
QuizKnowledge check - Cure, Re-default, Incomplete Workouts and Treatment of Open Cases

Downturn and Forward-Looking LGD, Calibration and Validation

LessonDownturn and Forward-Looking LGD, Calibration and Validation
VideoFrom Observed Workout LGD to a Governed Forward-Looking Estimate
QuizKnowledge check - Downturn and Forward-Looking LGD, Calibration and Validation
Impact SimulatorCollateral and Recovery-Timing Stress Simulator
AssignmentDevelop an LGD Calibration and Validation Pack
LessonLGD Recovery-Cash-Flow and Collateral Adjustment Checklist
LessonWorkout Recovery Tape, Collateral Register and LGD Calculator
LessonPD, LGD and EAD fundamentals
LessonDiscounting using the effective interest rate
QuizKnowledge check - PD, LGD and EAD fundamentals
LessonPD-LGD-EAD formula card
LessonECL movement and journal-entry map
LessonData quality checklist
LessonECL movement reconciliation template
LessonSynthetic sample loan portfolio

Final Assessment

QuizFinal Assessment - LGD, Collateral, Recoveries, Cure and Re-default (20 questions)

Certificate

CertificateCertificate of completionUnlocks after every quiz is completed at its required pass mark and all course requirements are complete.

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