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The identification, assessment, and prioritization of risks, followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.
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Exposure calculation of a re-coupon swap
It isn’t clear to me what question you’re asking when you say “exposure”.
If you mean MtM exposure then at the recoupon point the exposure is zero. This is because the fixed rate has been re-determine …