Potential Future Exposure: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Create the page. Source: JP Morgan https://www.jpmorgan.com/jpmpdf/1320663533358.pdf) |
(No difference)
|
Revision as of 14:22, 13 November 2016
(PFE).
Derivatives
The Potential Future Exposure (PFE) in a derivatives contract is an additional credit risk, over and above the current replacement cost of the contract.
The PFE represents the additional amount by which the exposure could increase, over the remaining life of the contract, with a given level of confidence.
