Probability of default
= Probability of default
{wiki=Probability_of_default}
The Probability of Default (PD) is a financial term used to quantify the likelihood that a borrower will fail to meet their debt obligations within a specified time frame, such as one year. It is a critical metric in credit risk management, used by lenders, investors, and financial institutions to assess the creditworthiness of borrowers, including individuals, corporations, and governments.