Lossgiven Default: A term used to describe a situation in which a borrower defaults on their loan and the lender stands to lose the entirety of their investment. This type of default occurs when there is no security or collateral backing the loan, making it risky for lenders who may not recover their money even if they pursue legal action. Lossgiven default is an unfortunate but real risk of investing, so investors must always be sure to consider potential losses before committing funds.