Mastering XVA Dynamics from the Buy Side
With high interest rates and volatile markets, derivatives valuation adjustments (XVAs) are again rising in prominence as crucial factors impacting the earnings of financial institutions. Managing XVAs and their components – such as credit (CVA), debit (DVA) and funding (FVA) valuation adjustments – is often discussed from a sell-side perspective, but less so from a buy-side point of view.
In a Risk.net webinar sponsored by Numerix, three experts discussed key aspects of XVA from a buy-side standpoint and strategies for navigating this increasingly complex terrain. Download this white paper to discover the stand-out themes that arose from that discussion.
- The evolving role of XVA for the buy-side
- Challenges of managing XVA, particularly in terms of collateral and cost of funding
- Why regulatory change remains a key challenge
- Changes in counterparty relationships and CSAs for the buy-side
- Need for enhanced XVA analytics to simulate future exposures and future capital
