White Paper

The Rise of xVA and How It Transformed an Entire Industry

Company: Numerix LLC

Numerix LLC case study

Category: Risk Management

Published: 22 September 2017

Format:

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Overview

While valuation adjustments are nothing new to the capital markets, the steady roll out of new regulations has forced banks to rapidly adapt to the increasingly onerous impacts on balance sheets.

Initially, this was responding to just a handful of adjustments; however, today the growing list of xVAs has resulted in billions of dollars of P&L impact across the industry.

This white paper brings to light the rapid growth and expansion of pricing and risk valuation adjustments in the financial industry. It explores how xVA is now the posterchild for risk-informed decision making and the key to unlocking trade profitability across capital markets.

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