Modeling default risk charge (DRC) with intensity probability theory

The latest regulation [1] of the fundamental review of the trading book (FRTB) proposes replacing incremental risk charge (IRC) with default risk charge (DRC). Accordingly, many studies were implemented to analyze this change and its impact. Current modeling practices test several assumptions during...

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Bibliographic Details
Main Authors: Badreddine Slime, Jaspreet Singh Sahni
Format: Article
Language:English
Published: AIMS Press 2025-02-01
Series:AIMS Mathematics
Subjects:
Online Access:https://www.aimspress.com/article/doi/10.3934/math.2025137
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