BAML takes $497m FVA loss

US bank becomes thirteenth to reflect cost of uncollateralised trades

Bank of America Merrill Lynch

Bank of America Merrill Lynch (BAML) has recognised the funding costs of uncollateralised derivatives trades, taking a $497 million loss in its fourth-quarter results, published today.

"This quarter we adopted a funding valuation adjustment (FVA) and incurred a $497 million charge against our sales and trading results as a result," said chief financial officer Bruce Thompson on the bank's investor call today.

"FVA is an adjustment to the fair value of uncollateralised derivative trades to

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 [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

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: