An XVA Approach to Counterparty Risk Appraisal

Background: More bona fide adjustments aimed at appraising counterparty risks and financial expenses related to over-the-counter derivative have become indispensable after the European sovereign debt catastrophe and the 2007/08’s world-wide fiscal crisis. The most notable measures include DVA, CVA and FVA. Methods: This paper advocates the application of XVA scheme to assess CVA, DVA, and FVA for managing risk and pricing of financial or OTC derivatives. Results and Discussion: A foundation formula is formulated and tested against different risk scenarios of CVA, DVA, FVA, and KVA using cross referenced data. Practical advices are provided for real industry application of XVA. Conclusion: Compared to traditional risk management in financial market where funding risk, credit risk, and default risk are accounted separately, the approach proposed by the current study monitors the multiple types of risk in a comprehensive framework and is more practically effective from financial operation point of view.

Sunscreen Liquid Foundation Containing Naringi crenulata Powder

Powdered bark and stem of Naringi crenulata or thanaka, the traditional sunscreen cosmetics, were sun protection factor (SPF) analyzed. SPF of the bark powder (1.51 ± 0.31) was comparable to TiO2 (1.99 ± 0.09), whereas that of stem was lower (1.13 ± 0.04). The optimum liquid foundation formula contains N. crenulata bark powder (10% w/w), TiO2 (12% w/w) and natural SPF booster (Aloe vera powder, 2% w/w). This broad spectrum sunscreen (critical wavelength = 387.900 ± 0.000 nm) potentially protected UVB (SPF = 35.467 ± 0.136) and UVA (5th boots star). This porcelain natural liquid foundation determined by CIELAB system was stable under heating-cooling for 6 cycles and one month storage at 4, 25 and 45 °C, separately, with a consistence of pH and viscosity. Its UVA protection efficiency was maintained and SPF was not significantly reduced. This presenting new herbal sun protection liquid foundation is available for cosmetic industry and would be further developed to prolong its efficacy including preference test in the panelist.