In investment banking, PnL Explained (also called P&L Explain, P&L Attribution or Profit and Loss Explained) is an income statement with commentary that attributes or explains the daily fluctuation in the value of a portfolio of trades to the root causes of the changes. The report is produced by product control; and is used by traders – especially desks dealing in derivatives (swaps and options) and interest rate products. P&L is the day-over-day change in the value of a portfolio of trades typically calculated using the following formula: PnL = Value today - Value from Prior Day
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