Technical paper
Optimising omega
Optimising a portfolio's omega generally requires non-linear optimisation methods. Helmut Mausser, David Saunders and Luis Seco show that, under suitable conditions, a simple change of variables transforms the problem into a linear program that is much…
Using options theory for commodity spreads
Market risk for a real option asset can be effectively managed using a spread option model. Raymond Cheng and Walt Tyrrell demonstrate the enhanced risk-adjusted performance of optional refinery capacity with a historical back test
A fair-value enterprise
Cutting Edge: Liability management
ABN Amro
Quant Analysis
HSBC Bank International
Quant Analysis
Permanent TSB
Quant Analysis
Caja Espana
Quant Analysis
Iterating cancellable snowballs and related exotics
Cutting edge: Exotic options
Calibración - Monte Carlo ponderado
Cutting Edge
An indirect view from the saddle
The saddlepoint method has become established as a tool for portfolio analysis. In this article, Richard Martin and Roland Ordovas review the main concepts and show that there are two essentially distinct ways of applying it to conditional independence…