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Descriptiona parameter that gives recognition to the reduction in CVA risk of the counterparty c arising from the bank’s use of single-name hedges of credit spread risk.
Reference[MAR50.23]
NotationcSNHc\sum_{c} SNH_c
FormulacSNHc=chc(rhcRWhMhBhDFh)\sum_{c} SNH_c = \sum_{c} \sum_{h \in c} \left( r_{hc} \cdot RW_{h} \cdot M_h \cdot B_{h} \cdot DF_h \right)