Collateralization could reduce the CVA. Collateral only changes the EE and it does not change the default probability of the counterparty or recovery value. “Because of the linear increase in exposure brought by minimum transfer and threshold amounts, they would increase the CVA correspondingly. ”
老师后半句话怎么理解啊，只看懂头和尾巴，EE上去 ，CVA上去，中间那些minimum transfer and threshold amounts, 是怎么变化怎么理解呢
