Technical paper
Empirical electricity price modelling
Hanjie Chen and John N. Jiang discuss how system-wide load-capacity ratio and system-wide generation forced outages impact day-ahead electricity spot price and show how to incorporate these two key factors in the price modelling
Margining insurance liabilities
Cutting edge: Solvency II
UBS
Quant Analysis
Deutsche Bank
Quant Analysis
Caixa Laietana
Quant Analysis
Nvesta
Quant Analysis
CMCDS valuation with market models
There is little, if any, literature available on constant-maturity credit default swap (CDS) valuation. Here, Damiano Brigo builds on his no-arbitrage dynamic CDS market model to derive a formula involving a 'convexity adjustment' feature correction,…
A saddle for complex credit portfolio models
Guido Giese applies the saddle-point approximation to analyse tail losses for very general credit portfolios, including correlated defaults, stochastic recovery rates, and dependency between default probabilities and recovery rates. The numerical…
Intensity gamma
Mark Joshi and Alan Stacey develop a new model for correlation of credit defaults based on a financially intuitive concept of business time similar to that in the variance gamma model for stock price evolution
A model of op risk with imperfect controls
Jorge Sobehart considers a model for the loss severity of operational risk events whose distribution is determined by risk control and risk mitigation. In particular, he shows that ineffective risk controls can lead to heavy-tailed distributions of…
A model of time-varying volatilities in futures contracts
Despite the utility of forward price models in the risk management framework, models of spot prices are used more prevalently. Ted Kury presents a tractable model with time-varying volatility, that allows for temporal changes
Inflation swaps - Mechanics of inflation swaps
Inflation swaps can reduce the complexity of hedging calculations in liability-driven investment. But is this tool really suitable for corporate pension funds?
Caixa Geral
Quant Analysis
Morgan Stanley
Quant Analysis
Stratégie Euro Prestige
Quant Analysis