In this presentation, Alexander Sokol provides an introduction to the concept of credit value adjustment (CVA), the rationale to CVA and how CVA helps to resolve many immediate problems. It also discusses the risk associated with CVA including the wrong way risk in CVA, and the Basel III capital charges for CVA. The author also makes a comparison of fair value and regulatory CVA. Finally it discusses CVA hedging and Debt Value Adjustment (DVA).

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