Author Topic: Recovery rate  (Read 376 times)

serena_gallo

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Recovery rate
« on: March 20, 2020, 12:05:31 PM »
Hi everyone,
Is correct to assess Recovery rate on Lending Club chargedoff loans in this way:
(recoveries-collections)/(loan_amount-total_rec_principal)
or It is more appropriate to this calculation:
total_rec_principal+recoveries/ loan_amount

Any suggestion?

AnilG

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Re: Recovery rate
« Reply #1 on: March 21, 2020, 06:49:49 AM »
Define recovery rate and you will get your answer. Net Recoveries / Remaining Principal makes better sense as Recovery Rate of Charged Off loans as you are using only data since charge off.
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Anil Gupta
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