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Hi @nc27, I can try to answer the above-mentioned doubts a) Yes, it is possible to get a negative bCVA on the portfolio in case the creditworthiness of the party (in this case risky company rated BBB) decreases (due to for eg poor quality of collateral posted, higher PD, wider credit spread...

Thanks, David for the explanation.

Hi David, Thanks for the clear explanation of Metallgesellschaft case. As per the above-mentioned points 1. Since the spot prices declined, short long term forward position gained since MG had fixed the price at which the oil was needed to be delivered. It would have received a higher price...