Exposures and loan equivalents

[shanlane]

Hello,

I may be interpreting something incorrectly, but in the Cannabaro paper he says that EE(t) curve is the "loan equivalent"exposure curve, but in the Crouhy chapter he says:

"the loan equivalent is an estimate of the average positive exposre, over the life of the deal"

I read this as the EPE.

But then he says

"Accordingly, the loan equivalent value is equal to the MTM value plus the EE."

Either something is inconsistent with the jargon we have been using or my understanding of this is flawed.

Any advice?

Thanks!

Shannon