Russian invasion stirs up ‘perfect storm’ for XVA desks

Declining credit quality of Russian companies and spike in inflation threaten CVA and FVA double-whammy for banks


The financial fallout from Russia’s invasion of Ukraine will have an “extraordinary” effect on how banks must adjust the value of their derivatives to take into account credit and funding risks, experts warn.

Credit valuation adjustment (CVA) exposures are set to climb as Russian corporate credit spreads blow out following international economic sanctions. Meanwhile, a spike in inflation – driven by fears over disrupted access to Russian gas and oil and the associated rise in energy prices –

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact or view our subscription options here:

You are currently unable to copy this content. Please contact to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here