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xVA arbitrage

Joined
8/31/12
Messages
16
Points
13
Hi,

Is possible to profit arbitraging in an xVA desk? I know the following:
-It's quite hard to have some standarized modeling among institutions.
-One price law doesn't follow
-xVA regulations are forcing several non sophisticated financial institutions to take into account these VAs increasing the probability of not pricing them properly
But some desks work with zero or negative budget.

So, Is it possible in real life to profit consistenly and will it be reflected on end of year bonuses?

Thank you!
 
yes if you somehow figure out how to model the dynamic of simm, you can make lots of money
 
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