This month's cover story illustration uses Dr Frankenstein’s monster as a visual metaphor for dealers’ attempts to apply fair-value accounting to funding valuation adjustment (FVA). In part, that’s because the results, so far, are ugly – the numbers are being stitched together using an assortment of ungainly approximations – and in part, it’s because auditors are terrified they will have to grapple with these inventions. Even some banks are looking on with disquiet.
But the metaphor works on ano
The week on Risk.net, July 7-13, 2018Receive this by email