Dealers still split on XVA desks’ funding remit
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Risk Benchmarking: Global dealers use XVA desks to manage swaps funding needs, but most treasuries retain some control
A bank’s treasury function might seem the natural home for managing the funding and liquidity requirements of its swaps portfolios – indeed, many bank treasurers would strongly prefer it that way. Yet at half the firms taking part in Risk.net’s latest XVA Benchmarking exercise, the derivatives valuation adjustments (XVAs) desk takes on some or all of that responsibility, rising to three-quarters
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