Credit Value Adjustment (cva) Adjusts valuation of a trade or portfolio for the possibility of self or counterparty default. If the counterparty has low credit quality then the CVA is larger, and the NPV of the trade is less positive, or more negative.
Credit Value Adjustment (cva) Adjusts valuation of a trade or portfolio for the possibility of self or counterparty default. If the counterparty has low credit quality then the CVA is larger…