Can someone explains what does the above mentioned desk do?
What are their responsibilities and how do they manage them, where do they fit into the rest of the organization?
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2$\begingroup$ Welcome Quant SE. I vote to close this question because job and career questions are off-topic. See quant.stackexchange.com/help/on-topic $\endgroup$ – Sanjay Mar 12 '19 at 11:38
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2$\begingroup$ It is the desk responsible for evaluating scenarios corresponding to the action of counterparties (to existing contracts) failing. Their job is risk assessment and risk mitigation via strategies such as market hedging execution, or new business targeting. $\endgroup$ – Attack68♦ Mar 12 '19 at 11:50
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$\begingroup$ @Attack68 Great answer, could you add it as one? $\endgroup$ – Bob Jansen♦ Mar 12 '19 at 11:54
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2$\begingroup$ The XVA Challenge by Gregory $\endgroup$ – Attack68♦ Mar 12 '19 at 12:07
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1$\begingroup$ You will want to understand CVA (credit valuation adjustments) and related "XVA". The desk would calculate and keep track of these adjustments for each of a bank's counterparties. +1 for any if several books by Gregory. $\endgroup$ – Drew Mar 12 '19 at 12:20
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It is the desk responsible for evaluating scenarios corresponding to the action of counterparties (to existing contracts) failing. Their job is risk assessment and risk mitigation via strategies such as market hedging execution, or new business targeting.
Rather than a "traditional" desk responsible for trading a suite of products (say a bond trading desk trades bonds attempts to ensure that the risk of the portfolio with respect to bond prices is well managed, appropriately sized and positioned favourably) a counterparty risk trading desk manages monetary exposure to counterparties aggregated over many of the sub suites of products, e.g IRS, FXswaps, Equity Swaps, Loans, Cross Currency Swaps, TRS, Options, etc.
