---
title: Hedging Counterparty Credit Risk
url: https://www.ml-quant.com/papers/ssrn/5142912/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 5142912
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5142912
featured: 2025-02-26
citations: unknown
topic: Derivatives & Volatility
---


# Hedging Counterparty Credit Risk

The article explores how to price and hedge counterparty credit risk and funding when there's no option to hedge the default risk of the bank or the counterparty. It uses local risk minimization to determine the best strategy.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5142912
- Identifier: SSRN 5142912
- Released: 2025-02-24
- First featured: Quant Letter No. 86 (2025-02-26): https://www.ml-quant.com/issues/2025-02-26/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Derivatives & Volatility

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