Definition
Default Loss Guarantee – A contractual arrangement in which a loan-distribution platform (rather than the lender that actually books the loan) agrees to absorb a defined share of losses if borrowers default, in exchange for a fee. It lets a platform earn recurring "trail" revenue tied to a lending partner's book without itself holding the loan as an asset — but it also means the platform is carrying real credit risk on paper it doesn't originate or fund, which won't show up as a loan loss provision the way it would for a bank. Found In: MD&A, Notes to Financial Statements (contingent liabilities/guarantees)