1.PDs shall be determined in accordance with the methods for corporate exposures.
The following minimum PDs shall apply:
0,09 % for exchange traded equity exposures where the investment is part of a long-term customer relationship;
0,09 % for non-exchange traded equity exposures where the returns on the investment are based on regular and periodic cash flows not derived from capital gains;
0,40 % for exchange traded equity exposures including other short positions as set out in Article 155(2);
1,25 % for all other equity exposures including other short positions as set out in Article 155(2).
2.Private equity exposures in sufficiently diversified portfolios may be assigned an LGD of 65 %. All other such exposures shall be assigned an LGD of 90 %.
3.M assigned to all exposures shall be five years.