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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. See Financial risk management § Banking.
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