Traders see DVA adjustment as 'accounting fudge'
Dealers at London event remain unconvinced by controversial funding adjustment
Even though accounting standards have pushed banks towards managing and reporting debit valuation adjustment (DVA) on a regular basis, many traders still view the adjustment as an “accounting fudge”, declared a senior risk manager at the Liquidity and Funding Risk conference on September 30.
“The traders… when I speak to them internally and externally to our organisation, a lot of them do not like the concept of DVA – a lot of them think it is kind of an accounting fudge”, said Steven Tait, head
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