Show me the money: banks explore DVA hedging

Show me the money

money-gap-for-dva

Debit value adjustment (DVA) is controversial for obvious reasons – it allows an institution to report profits as its health deteriorates, reflecting the declining value of its liabilities. Banks downplay it in their earnings reports, while analysts and investors ignore it, but there is another way to reduce its impact – it can be hedged. This is already happening to some extent on the derivatives side, sources say, and Credit Suisse, UBS, UniCredit and one Canadian bank are all considering

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: http://subscriptions.risk.net/subscribe

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 Risk.net 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: