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Thank you, Brian for your help.

Hello, I have difficulties understanding why the change in price has to be added to the original price and not subtracted. I believe it has to do with the short position, but can anyone help? Thank you very much! Johannes

Hi there, I would like to post the question of whether a UGD of less than 100% is plausible in the real world. So far, in any credit risk modelling that I came across, UGD was assumed to be exactly 100% (leaving aside confusing covenants), because as a debtor moves into default, she will "max...