There is intense debate in the industry about best practices for marking, managing and mitigating counterparty risk charges and funding costs. The inclusion of funding valuation adjustment(FVA) for unsecured derivatives has been heavily debated by practitioners and academics; and the marking methodology for debit valuation adjustment (DVA) still raises many questions.
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According to the Ernst &Young 2012 CVA/FVA Survey, all banks record credit valuation adjustment (CVA)
The week on Risk.net, March 10-16 2018Receive this by email