Dear David ,
I will kindly ask for help regarding this topic. Suppose if I want to quantify market and funding liquidity risk separately.
Under this my first taught is:
- for funding liquidity risk what will be PnL loss in case of utilizing expensive sources of funding ( suppose negative...
Hi @David Harper CFA FRM,
What is the concept of "funding cost" being mentioned in the chapter?
What is the difference between a funded derivative vs. an un-funded one? And what is the funding/liquidity risk related to? I understand it as the ability to obtain a loan and the i-rate one has to...
How can funding liquidity risk be converted from counter party risk? I can't get it in Gregory Chapter 5. Also, can anyone clear me on this' the institution will incur a funding cost when uncollateralized trade moves in their favor and experience a benefit when reverse happens'.