Hi. Referencing a prior question that I asked in another video (link is here: https://learn.365datascience.com/courses/credit-risk-modeling-in-python/lgd-and-ead-models-dependent-variables/), don't we then have to subtract our predictions from 1? The LGD formula is 1 - recovery rate. In this case, we calculated our predicted recovery rates. So, don't we still have to take 1 - our predicted recovery rates to arrive at the LGD?

Fyi this is done in one of the last videos.

Follow this topic