Introduction to FVA

Introduction to FVA

In the next video of this pathway on XVA, Steven Marshall discusses Funding Valuation Adjustment, or FVA. FVA looks at the cost of financing related to derivative transactions. Steven discusses the need for FVA and then the various developments that have taken place since the financial crisis.
Overview

Funding Valuation Adjustment (FVA) looks at the cost of financing related to derivative transactions. The cost related to the trade depends on the derivative, whether it is uncollateralised or collateralised.

Key learning objectives:

  • Understand how FVA has developed

  • Outline the purpose of FVA

  • Outline other funding adjustments, CollVA and IMVA

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Summary
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Expert
Steven Marshall

Steven Marshall

Steven Marshall has over 25 years of experience in Global Markets and Investment Banking trading both interest and credit derivatives, most recently running the Global Business Resource Management Team at Nomura International. Steven is now the CEO and co-founder of RegRisk Technology where he provides innovative technology solutions to aid with regulatory compliance at financial firms and is currently providing XVA consultancy services via Tensilo Limited.

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