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#asset-swap #finance #gale-using-and-tradning-asset-swaps
in MVA asset swap the exposure starts low and builds over time rather than starting high and reducing like in par/par asset swap
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owner: piotr.wasik - Using and Trading Asset Swaps - Giles Gale (Morgan Stanley), p7

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 <span>the exposure starts low and builds o ver time rather than starting high and reducing. A par/par s wap creates a collateral probl em i mmediately as the s wap starts off-market and the present value declines ov er the life of the agreement. In an MVA swap, however, co



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