A practical guide to counterparty risk management & credit value adjustment from a leading credit practitioner Since the collapse of Lehman Brothers & the resultant realization of extensive counterparty risk across the global financial markets the subject of counterparty risk has become an unavoidable issue for every financial institution. This book explains the emergence of counterparty risk & how financial institutions are developing capabilities for valuing it. It also covers portfolio management & hedging of credit value adjustment debit value adjustment & wrong-way counterparty risks. In addition the book addresses the design & benefits of central clearing a recent development in attempts to control the rapid growth of counterparty risk. This uniquely practical resource serves as an invaluable guide for market practitioners policy makers academics & students.