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Hedging in SA-CVA

Alexis Alexis Follow Jun 27, 2023 · 1 min read
Hedging in SA-CVA
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An insightful article from S&P GLobal Market Intelligence : Navigating the Challenges and Nuances of Hedging in SA-CVA. The purpose of an XVA desk is to hedge economic risk, so what can be done to align as much as possible economic and regulatory calculations? The divergences are counterproductive as an hedge could increase your regulatory risk; however they will always exist.

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Alexis
Written by Alexis Follow
Alexis Bunel, programme director in Capital Market for more than 20 years of experience, with a long experience on XVA change management