Traders see DVA adjustment as 'accounting fudge'

Dealers at London event remain unconvinced by controversial funding adjustment

abacus accounting
DVA: an accounting fudge that leaves a bad taste for dealers

Even though accounting standards have pushed banks towards managing and reporting debit valuation adjustment (DVA) on a regular basis, many traders still view the adjustment as an “accounting fudge”, declared a senior risk manager at the Liquidity and Funding Risk conference on September 30.

“The traders… when I speak to them internally and externally to our organisation, a lot of them do not like the concept of DVA – a lot of them think it is kind of an accounting fudge”, said Steven Tait, head

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