Laenutovalue

Laenutovalue is a theoretical financial metric used to assess the current economic value of a loan or a portfolio of loans by incorporating credit risk, prepayment risk, and liquidity considerations. It is intended to reflect how much a loan asset would be worth to a prudent buyer under a given set of risk assumptions, beyond its nominal contractual payments.

Calculation and inputs commonly involved in laenutovalue include: expected cash flows from the loan, the probability that those cash flows are received (survival or default-adjusted probabilities), the discount rate that accounts for time value and risk, and the potential loss given default or prepayment behavior. A simplified description describes laenutovalue as the sum of expected cash flows, weighted by survival probabilities, and discounted at a risk-adjusted rate. In practice, models may explicitly separate components such as default risk, recovery rates, prepayment probabilities, and liquidity premia to produce a single, comparable value.

Applications for laenutovalue lie in loan portfolio valuation, risk management, and capital planning. It provides a framework for comparing loans with different risk profiles under uniform assumptions, and it can be used in scenario analysis and stress testing to observe how changes in PD, LGD, or prepayment affect overall value.

Limitations include reliance on model assumptions and input data, sensitivity to small changes in default and prepayment estimates, and a lack of standardization across institutions. As a theoretical construct, laenutovalue is not a fixed market price but a valuation guide contingent on chosen risk parameters.