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#asset-swap #finance #gale-using-and-tradning-asset-swaps
The MVA method is very similar to the par/par method, but the difference between par and the dirty price of the bond is exchanged at maturity rather than at settlement and the floating notional is equal to the dirty price of the bond.
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owner: piotr.wasik - Using and Trading Asset Swaps - Giles Gale (Morgan Stanley), p7

outweigh the advantage of simplicit y for most trades. Market Value Accrued ( MVA ) Asset Sw aps To help address the probl ems created by collateralisation for a par/par swap, the market value accrued or MVA technique can be used . <span>The MVA method is very similar to the par/par method, but the difference bet ween par and t he dirty price of the bon d is exchanged at maturity rather than at settlement and the floating notional is equal to the dirt y price of the bond. The result is that the counterparty exposure is s witched from one party to the other and the exposure starts low and builds o ver time rather than starting high and reducing. A par/



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