Credit risk valuation : methods, models, and applications

Bibliographic Information

Credit risk valuation : methods, models, and applications

Manuel Ammann

(Springer finance)

Springer, c2010

2nd ed

  • : pbk

Available at  / 2 libraries

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Note

"2nd ed. 2001, corr. 2nd printing"--T.p. verso

Originally published as vol. 470 in the series "Lecture notes in economics and mathematical systems" with the title: Pricing derivative credit risk

Bibliography: p. [237]-246

Includes index

Description and Table of Contents

Description

This book offers an advanced introduction to models of credit risk valuation, concentrating on firm-value and reduced-form approaches and their application. Also included are new models for valuing derivative securities with credit risk. The book provides detailed descriptions of the state-of-the-art martingale methods and advanced numerical implementations based on multivariate trees used to price derivative credit risk. Numerical examples illustrate the effects of credit risk on the prices of financial derivatives.

Table of Contents

1. Introduction.- 2. Contingent Claim Valuation.- 3. Credit Risk Models.- 4. A Firm Value Pricing Model for Derivatives with Counterparty Default Risk.- 5. A Hybrid Pricing Model for Contingent Claims with Credit Risk.- 6. Pricing Credit Derivatives.- 7. Conclusion.- A. Useful Tools from Martingale Theory.- A.1 Probabilistic Foundations.- A.2 Process Classes.- A.3 Martingales.- A.4 Brownian Motion.- A.5 Stochastic Integration.- A.6 Change of Measure.- References.- List of Figures.- List of Tables.

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