# Recovery Rate

*Risk & Portfolio — Finicade finance glossary*

The fraction of a defaulted loan or bond that creditors actually get back. Paired with the odds of default, it sets how much a lender expects to lose — the core of credit pricing.

**Also known as:** expected-vs-unexpected-loss

**Related terms:** [Defaulting on a Loan](https://finicade.com/glossary/default-credit), [Credit Risk](https://finicade.com/glossary/credit-risk), [Credit Spread](https://finicade.com/glossary/credit-spread)

**Taught in:** Risk Arena — Credit Risk Enters the Arena

Source: https://finicade.com/glossary/recovery-rate