Japan CVA shift may break local banks’ swaps stranglehold

Introduction of pricing adjustment could see foreign banks compete for corporate business

For years, Japanese banks’ practice of not charging derivatives clients for counterparty risk has made them an outlier compared to their peers in other developed nations, and has locked international banks out of the domestic corporate swaps business in the process.

But the country’s banks are now on the path toward pricing a so-called credit valuation adjustment (CVA) into the cost of new derivatives trades – a move some believe is motivated by a combination of new regulations and financial

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here