Date of Event: 24th April
Gary Wong will present two diverse methods for limiting the cost of KVA and turning it into profit. The first method will examine Solvency II and the technique employed by insurance and pension companies already to cope with capital costs, and the other method will explain how banks can release capital over time into pure profit.
This marcus evans event will develop the current discussions on how KVA is calculated and managed within banks and further develop CVA competency by discussing the latest innovative ideas and solutions from some of the brightest minds in the banking sector. By continuing the debate on KVA and CVA with regulations in mind, banks will not only ensure they are prepared to deal with the new challenges to KVA and CVA, but that their strategies and teams are at an optimal level to deal with the next set of market challenges.
The latest XVA family member, KVA, has become an increasingly difficult and complicated valuation for banks to price and manage. With over 60% of XVA costs coming from KVA, it is essential that fundamental questions such as how to price it, how to hedge it, and simply how to define it are addressed by banks to protect against multi-billion pound loses. The focus has been on KVA since banks obtained a degree of competency with CVA, however this year CVA has once again become an important topic of discussion. Banks are attempting to get to grips with the new FRTB regulations and Bilateral Initial Margin rules which are going to impact CVA calculations and management. The continuing development of regulations and strategies for KVA and CVA mean the two are becoming increasingly entwined and demand that they are examined together rather than separately.
Key topics:
- Benchmark your methods of calculating KVA with those of your peers
- Discover how firms across Europe are reflecting KVA in their businesses
- Hear how the ‘Basel IV’ regulations, including the FRTB, are impacting CVA and KVA
- See how initial margin is interacting with CVA and KVA
Full details and booking: http://www.marcusevans-conferences-paneuropean.com/marcusevans-conferences-event-details.asp?EventID=23334&SectorID=2#.WHjufpKBdY9
