Introducing the XVA desk - a treasurer's nightmare

Grand centralisation

Working out how to organise the management of what some banks call the XVAs may initially seem an innocuous issue. The term groups together the pricing adjustments that have grown in number and importance since the financial crisis – the best-known being credit, debit and funding valuation adjustment (CVA, DVA and FVA) – and because these values overlap, some banks are grouping them organisationally as well, giving pricing and hedging responsibility to a single desk. Barclays and JP Morgan are a