Mitigant Effect on ECL

Mitigant Effect on Expected Credit Loss enables you to calculate the Effective Loss Given Default (ELGD). The ELGD is calculated as the product of LGD and the Mitigant Effect. The Mitigant Effect is calculated using the following formula:

Mitigant Effect = {(Exposure - ((1- HairCut for Collateral)*Collateral Value) + Recovery Cost) or Exposure}