Recovery rate

The share of a claim actually recovered after a default, historically ~40% for senior unsecured bonds. The other half of credit risk, alongside default probability. See CDS.

Where Recovery rate is explained in depth

The definition above is the short version. These pages put it to work, in the order they use it most:

Terms this definition uses

The whole glossary

Information and education only. Every page, figure and calculator on this site exists to explain how financial instruments work. Nothing here is investment, tax or legal advice, a recommendation, or a valuation you can rely on. Full disclaimer