1. Institutions shall use the following LGD values:
(a) senior exposures without eligible collateral: 45 %;
(b) subordinated exposures without eligible collateral: 75 %;
(c) institutions may recognise funded and unfunded credit protection in the LGD in accordance with Chapter 4;
(d) covered bonds eligible for the treatment set out in Article 129(4) or (5) may be assigned an LGD value of 11,25 %;
(e) for senior purchased corporate receivables exposures where an institution is not able to estimate PDs or the institution's PD estimates do not meet the requirements set out in Section 6: 45 %;
(f) for subordinated purchased corporate receivables exposures where an institution is not able to estimate PDs or the institution's PD estimates do not meet the requirements set out in Section 6: 100 %;
(g) for dilution risk of purchased corporate receivables: 75 %.
2. For dilution and default risk if an institution has received permission from the competent authority to use own LGD estimates for cor
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