Patience pays off for XVA desks in wild week of tariff swings

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- By Ben St. Clair and Lukas Becker
- 14 Apr 2025

When US president Donald Trump’s tariffs tanked markets and plunged the business world into chaos, large derivatives dealers resisted the urge to immediately hedge their exposures to corporate clients – a reflex reaction that has in the past led to a ‘doom loop’ of ever-widening credit spreads and credit valuation adjustment (CVA) losses.

The past two weeks played out differently. “We saw more

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