Rates

The extent to which principal and accrued interest on a debt instrument that is in default can be recovered, expressed as a percentage of the instrument's face value. The recovery rate can also be defined as the value of a security when it emerges from default.

The recovery rate enables an estimate to be made of the loss that would arise in the event of default, which is calculated as (1 - Recovery Rate). Thus, if the recovery rate is 60%, the loss given default or LGD is 40%. On a $10 million debt instrument, the estimated loss arising from default is thus $4 million.

Commerical account usually refers to a checking or other type of demand deposit account. Regulation Q of the Federal Reserve prohibits banks from paying interest on this type of account. They instead pay earnings credits that are based upon the average account balance.

Consumer accounts are a common method used in the business environment when recording financial information. These accounts often include information for individual customers or business clients, depending on the business operations of the company.

We have a national reputation as one of the leading forensic accounting firms specializing in complex commercial litigation matters. Our experienced professionals have testified as expert witnesses in state and federal courts as well as arbitration.

The credit rating represents the credit rating agency's evaluation of qualitative and quantitative information for a company or government; including non-public information obtained by the credit rating agencies' analysts.

A poor credit rating indicates a credit rating agency's opinion that the company or government has a high risk of defaulting, based on the agency's analysis of the entity's history and analysis of long term economic prospects.

More intensive methods of remote influence and personal contact with the debtor. For example, personal visits to field teams at the place of residence of debtors, their relatives, employers, assisting bailiffs others.