Counterparty Credit Risk (CCR)
Interactive

Counterparty Credit Risk (CCR)

Intuition Publishing
Updated Sep 24, 2020

CCR remains a central issue in regular bilateral trades and this case study examines the potentially explosive nature of CCR in the context of credit derivative instruments. We will also look at how CCR is managed and reported by banks, and how the reporting authorities have reacted to the extreme earnings volatility caused by the valuation of CCR.