This Palgrave Pivot assesses the impact of the regulatory framework for derivatives built
post-crisis and examines its ambition to centralize and minimize credit risk enhance
transparency and regain control. Zelenko delves into the powerful destabilizing forces exerted
by derivatives markets in the global financial meltdown of 2008. Recapping the evolution in
markets and counterparty risk management as well as key aspects of regulation and their impact
this book aims to give readers the big picture and foster a deep understanding of the role of
derivatives markets in the financial crisis. This practical angle will give useful keys to
end-users and their risk managers as they are faced with a new complex and changing
environment. Additionally this book conducts a comprehensive analysis of the new metrics the
market has created to model price and manage credit risk such as the Credit Value Adjustment
(CVA) the Debt Value Adjustment (DVA) or the Funding Value Adjustment(FVA) and takes full
stock of a domain that is still in rapid evolution. This volume covers the concepts methods
and approaches taken by banks to manage counterparty credit risk in their derivatives
activities in the new post-crisis market and regulatory environment and it aims to highlight
what is practical and effective today.
