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Recovery Rate

Measures the fraction of a claim recovered after default or restructuring.

Formula

Recovery rate = Recovered value / Claim value

Variables: Recovered value; claim value

What it means

Measures the fraction of a claim recovered after default or restructuring.

Example

Recovering 40 on a 100 claim gives a 40% recovery rate.

How to interpret it

This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.

BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.