HSBC, Mizuho, US Bancorp ensnared by endgame CVA rule

HSBC North America, Mizuho Americas and US Bancorp may have to start capitalising credit valuation adjustment risk under the US’s latest Basel III endgame proposal – a consequence of the size of their derivatives books. In 2025, Mizuho Americas’ OTC notional averaged $10.58 trillion, HSBC North America’s $1.33 trillion and US Bancorp’s $1.32 trillion. 

What futures and options say about the cost of war

“A market can expect normalisation while still assigning a non-negligible probability to extreme outcomes. Capturing this requires extracting the implied distribution from option prices” – Marcello Minenna, economist and columnist