  In this work we study the price-hedge issue for general defaultable contracts
characterized by the presence of a contingent CSA of switching type. This is a
contingent risk mitigation mechanism that allow the counterparties of a
defaultable contract to switch from zero to full/perfect collateralization and
switch back whenever until maturity T paying some instantaneous switching costs
, taking in account in the picture CVA, collateralization and the funding
problem. We have been lead to the study of this theoretical pricing/hedging
problem, by the economic significance of this type of mechanism which allows a
greater flexibility in managing all the defaultable contract risks with respect
to the "standard" non contingent mitigation mechanisms (as full or partial
collateralization). In particular, our approach through hedging strategy
decomposition of the claim (proposition 2.2.5) and its price-hedge
representation through system of nonlinear reflected BSDE (theorem 3.2.4) are
the main contribution of the work.
