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Definition | : | First Loss Default Guarantee |
Category | : | Business » Finance |
Country/ Region |
: | Worldwide
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Popularity | : |
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Type | : |
Initialism
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First Loss Default Guarantee (FLDG) is an arrangement whereby a third party compensates a lender if the borrower defaults.
FLDG is a lending model wherein a third-party guarantees to compensate up to a certain percentage of default in a loan portfolio.
The full form of FLDG is First Loss Default Guarantee