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We consider a class of assets whose risk-neutral pricing dynamics are described by an exponential L\'evy-type process subject to default. The class of processes we consider features locally-dependent drift, diffusion and default-intensity…

Computational Finance · Quantitative Finance 2013-04-19 Antoine Jacquier , Matthew Lorig

In this paper we study the Omega risk model with surplus-dependent tax payments in a time-homogeneous diffusion setting. The new model incorporates practical features from both the Omega risk model(Albrecher and Gerber and Shiu (2011)) and…

Risk Management · Quantitative Finance 2014-04-01 Zhenyu Cui

Applying excursion theory, we re-express several well studied fluctuation quantities associated to Parisian ruin problem for L\'evy risk processes in terms of integrals with respect to excursion measure for spectrally negative L\'evy…

Probability · Mathematics 2023-05-16 Bo Li , Xiaowen Zhou

Estimating and controlling large risks has become one of the main concern of financial institutions. This requires the development of adequate statistical models and theoretical tools (which go beyond the traditionnal theories based on…

Condensed Matter · Physics 2009-10-31 Jean-Philippe Bouchaud

We introduce a new paradigm for risk sharing that generalizes earlier models based on discrete agents and extends them to allow for sharing risk within a continuum of agents. Agents are represented by points of a measure space and have…

Risk Management · Quantitative Finance 2026-03-04 Vasily Melnikov

Global fixed income returns span across multiple maturities and economies, that is, they naturally reside on multi-dimensional data structures referred to as tensors. In contrast to standard "flat-view" multivariate models that are agnostic…

Portfolio Management · Quantitative Finance 2019-12-05 Bruno Scalzo Dees

Gevrey series are ubiquitous in analysis; any series satisfying some (possibly non-linear) analytic differential equation is Gevrey of some rational order. The present work stems from two observations: 1) the classical Gevrey series, e.g.…

Number Theory · Mathematics 2016-09-07 Yves André

Since Claude Shannon founded Information Theory, information theory has widely fostered other scientific fields, such as statistics, artificial intelligence, biology, behavioral science, neuroscience, economics, and finance. Unfortunately,…

Risk Management · Quantitative Finance 2021-09-09 Jiamin Yu

The inf-convolution of risk measures is directly related to risk sharing and general equilibrium, and it has attracted considerable attention in mathematical finance and insurance problems. However, the theory is restricted to finite sets…

Risk Management · Quantitative Finance 2022-03-22 Marcelo Brutti Righi , Marlon Ruoso Moresco

First passage problems for spectrally negative L\'evy processes with possible absorbtion or/and reflection at boundaries have been widely applied in mathematical finance, risk, queueing, and inventory/storage theory. Historically, such…

Probability · Mathematics 2019-11-15 Florin Avram , Danijel Grahovac , Ceren Vardar-Acar

In this paper we present a rather general phenomenological theory of tick-by-tick dynamics in financial markets. Many well-known aspects, such as the L\'evy scaling form, follow as particular cases of the theory. The theory fully takes into…

Disordered Systems and Neural Networks · Physics 2009-10-31 Enrico Scalas , Rudolf Gorenflo , Francesco Mainardi

This survey aims to review two decades of progress on exponential functionals of (possibly killed) real-valued L\'evy processes. Since the publication of the seminal survey by Bertoin and Yor, substantial advances have been made in…

Probability · Mathematics 2026-05-29 Martin Minchev , Mladen Savov

Logistic regression model is widely used in many studies to investigate the relationship between a binary response variable $Y$ and a set of potential predictors $\mathbf X$. The binary response may represent, for example, the occurrence of…

Methodology · Statistics 2021-05-04 Aba Diop , El Hadji Deme , Aliou Diop

We study solvency of insurers in a comprehensive model where various economic factors affect the capital developments of the companies. The main interest is in the impact of real growth to ruin probabilities. The volume of the business is…

Probability · Mathematics 2015-11-06 Harri Nyrhinen

Path dependence is omnipresent in many disciplines such as engineering, system theory and finance. It reflects the influence of the past on the future, often expressed through functionals. However, non-Markovian problems are often…

Mathematical Finance · Quantitative Finance 2023-03-03 Bruno Dupire , Valentin Tissot-Daguette

In this paper, we analyse some equity-linked contracts that are related to drawdown and drawup events based on assets governed by a geometric spectrally negative L\'evy process. Drawdown and drawup refer to the differences between the…

Pricing of Securities · Quantitative Finance 2018-02-20 Zbigniew Palmowski , Joanna Tumilewicz

We introduce a class of interest rate models, called the $\alpha$-CIR model, which gives a natural extension of the standard CIR model by adopting the $\alpha$-stable L{\'e}vy process and preserving the branching property. This model allows…

Computational Finance · Quantitative Finance 2016-02-22 Ying Jiao , Chunhua Ma , Simone Scotti

Focusing on gains & losses relative to a risk-free benchmark instead of terminal wealth, we consider an asset allocation problem to maximize time-consistently a mean-risk reward function with a general risk measure which is i)…

Mathematical Finance · Quantitative Finance 2026-02-18 Felix Fießinger , Mitja Stadje

Consider two different portfolios which have claims triggered by the same events. Their corresponding collective model over a fixed time period is given in terms of individual claim sizes $(X_i,Y_i), i\ge 1$ and a claim counting random…

Applications · Statistics 2016-10-07 Enkelejd Hashorva , Gildas Ratovomirija , Maissa Tamraz

We extend the previous treatment of Liouville theory on the torus, to the general case in which the distribution of charges is not necessarily symmetric. This requires the concept of Fuchsian differential equation on Riemann surfaces. We…

High Energy Physics - Theory · Physics 2011-07-28 Pietro Menotti