  Crises challenge client XVA management when continuous collateralization is
not possible because a derivative locks in the client credit level and the
provider's funding level, on the trade date, for the life of the trade. We
price XVA reduction strategies from the client point of view comparing multiple
trade strategies using Mandatory Breaks or Restructuring, to modifications of a
single trade using a Reset. We analyse previous crises and recovery of CDS to
inform our numerical examples. In our numerical examples Resets can be twice as
effective as Mandatory Break/Restructuring if there is no credit recovery. When
recovery is at least 1/3 of the credit shock then Mandatory Break/Restructuring
can be more effective.
