Perverse capital

Perverse capital

The post-Lehman risk management landscape is different in many ways, but perhaps the most noticeable change is a greater sensitivity to counterparty credit risk. The Basel III capital requirements include a controversial charge for credit value adjustment (CVA) – the market value of changes in counterparty exposure, which regulators claim accounted for roughly two-thirds of banks’ losses during the financial crisis.

The design of the charge has evolved gradually. Flaws in the original equivalent

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

If you already have an account, please sign in here.

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: