[ Industries : Banking Financial Service, Insurance Reinsurance & Brokerage ]

The applicability of CVA/DVA or markets for CDS etc is in its nascent stage of development in the BRICS countries and also many parts of the world. Some European banks has achieved their goals recently. If the deals are collateralized the DVA is definitely small but in situation of high default correlation it can be still sizable. If not collateralized then it is relevant. If there are little liquid CDS, finding data can be difficult. It’s a very complex topic RsRL’s acclaimed team members are working on with some important collaborators. RsRL looks at the developments of Basel III as neglecting DVA or at the american accounting standards board recommending it, according to the feelings to clients’ portfolios/ contracts etc.

There are pros and cons in the notion of DVA, mostly cons in my opinion, and it’s complex to hedge properly. RsRL has created a name already to deal with such problems.