Moody's unveils default loss model

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Moody's Risk Management Services has launched its first default loss model – LossCalc. The web-based tool is designed to aid investors in modelling more accurate overall expected losses for defaulted debt instruments, by incorporating default rates using RiskCalc and recovery rates using LossCalc.

"Probability of default is only one part of the credit risk equation – financial professionals also need to understand the severity of loss," says Roger Stein, md of quantitative risk analytics at

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