English

Generalized BSDEs with random time horizon in a progressively enlarged filtration

Probability 2021-05-17 v1 Mathematical Finance

Abstract

We study generalized backward stochastic differential equations (BSDEs) up to a random time horizon ϑ\vartheta, which is not a stopping time, under minimal assumptions regarding the properties of ϑ\vartheta. In contrast to existing works in this area, we do not impose specific assumptions on the random time ϑ\vartheta and we study the existence of solutions to BSDEs and reflected BSDEs with a random time horizon through the method of reduction. In addition, we also examine BSDEs and reflected BSDEs with a l\`adl\`ag driver where the driver is allowed to have a finite number of common jumps with the martingale part.

Keywords

Cite

@article{arxiv.2105.06654,
  title  = {Generalized BSDEs with random time horizon in a progressively enlarged filtration},
  author = {Anna Aksamit and Libo Li and Marek Rutkowski},
  journal= {arXiv preprint arXiv:2105.06654},
  year   = {2021}
}