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Related papers: BSDEs with random default time and their applicati…

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In this paper, we introduce a new type of backward stochastic differential equations (BSDEs) with infinite anticipation, where the generator depends on the entire future values of the solution in infinite horizon. We show that the new BSDEs…

Probability · Mathematics 2025-11-20 Guanwei Cheng , Shuzhen Yang

In this paper we study a stochastic differential equation driven by a fractional Brownian motion with a discontinuous coefficient. We also give an approximation to the solution of the equation. This is a first step to define a fractional…

Probability · Mathematics 2016-07-25 Johanna Garzón , Jorge A. León , Soledad Torres

In recent years, the counterparty credit risk measure, namely the default risk in \emph{Over The Counter} (OTC) derivatives contracts, has received great attention by banking regulators, specifically within the frameworks of \emph{Basel II}…

Pricing of Securities · Quantitative Finance 2017-04-12 Michele Bonollo , Luca Di Persio , Luca Mammi , Immacolata Oliva

We study distribution dependent stochastic differential equations with irregular, possibly distributional drift, driven by an additive fractional Brownian motion of Hurst parameter $H\in (0,1)$. We establish strong well-posedness under a…

Probability · Mathematics 2021-06-01 Lucio Galeati , Fabian A. Harang , Avi Mayorcas

We propose new numerical schemes for decoupled forward-backward stochastic differential equations (FBSDEs) with jumps, where the stochastic dynamics are driven by a $d$-dimensional Brownian motion and an independent compensated Poisson…

Numerical Analysis · Mathematics 2015-08-06 Weidong Zhao , Wei Zhang , Guannan Zhang

We introduce a system of Brownian particles, each absorbed upon hitting an associated moving boundary. The boundaries are determined by the conditional probabilities of the particles being absorbed before some final time horizon, given the…

Probability · Mathematics 2025-10-06 Philipp Jettkant , Andreas Sojmark

We are interested on reflected advanced backward stochastic differential equations (RABSDE) with default. By the predictable representation property and for a Lipschitz driver, we show that the RABSDE with default has a unique solution in…

Optimization and Control · Mathematics 2018-03-21 N. Agram , S. Labed , B. Mansouri , M. A. Saouli

This article deals with the numerical approximation of Markovian backward stochastic differential equations (BSDEs) with generators of quadratic growth with respect to $z$ and bounded terminal conditions. We first study a slight…

Probability · Mathematics 2016-02-05 Jean-François Chassagneux , Adrien Richou

Backward stochastic differential equations extend the martingale representation theorem to the nonlinear setting. This can be seen as path-dependent counterpart of the extension from the heat equation to fully nonlinear parabolic equations…

Probability · Mathematics 2022-02-14 Yiqing Lin , Zhenjie Ren , Nizar Touzi , Junjian Yang

We present a new deep primal-dual backward stochastic differential equation framework based on stopping time iteration to solve optimal stopping problems. A novel loss function is proposed to learn the conditional expectation, which…

Computational Finance · Quantitative Finance 2024-09-12 Jiefei Yang , Guanglian Li

We first state a special type of It\^o formula involving stochastic integrals of both standard and fractional Brownian motions. Then we use Doss-Sussman transformation to establish the link between backward doubly stochastic differential…

Probability · Mathematics 2011-03-18 Shuai Jing

We consider an approach to credit risk in which the information about the time of bankruptcy is modelled using a Brownian bridge that starts at zero and is conditioned to equal zero when the default occurs. This raises the question whether…

Probability · Mathematics 2016-09-13 Matteo L. Bedini , Michael Hinz

In this paper, high-order moment, even exponential moment, estimates are established for the H\"older norm of solutions to stochastic differential equations driven by fractional Brownian motion whose drifts are measurable and have linear…

Probability · Mathematics 2020-05-01 Xi-Liang Fan , Shao-Qin Zhang

We study solutions of a class of one-dimensional continuous reflected backward stochastic Volterra integral equations driven by Brownian motion, where the reflection keeps the solution above a given stochastic process (lower obstacle). We…

Probability · Mathematics 2020-04-27 Nacira Agram , Boualem Djehiche

We investigate the existence and uniqueness of non-Markovian second-order backward stochastic differential equations with an uncertain terminal horizon and establish comparison principles under the assumption that the driver is Lipschitz…

Probability · Mathematics 2025-06-19 Alberto Gennaro , Thibaut Mastrolia

We develop a martingale approach for studying continuous-time stochastic differential games of control and stopping, in a non-Markovian framework and with the control affecting only the drift term of the state-process. Under appropriate…

Probability · Mathematics 2008-08-28 Ioannis Karatzas , Ingrid-Mona Zamfirescu

This paper addresses the existence and uniqueness of solutions to Reflected Generalized Backward Stochastic Differential Equations (GRBSDEs) within a general filtration that supports a Brownian motion and an independent integer-valued…

Probability · Mathematics 2026-03-09 Badr Elmansouri , Mohamed El Otmani

This paper is dedicated to the analysis of backward stochastic differential equations (BSDEs) with jumps, subject to an additional global constraint involving all the components of the solution. We study the existence and uniqueness of a…

Probability · Mathematics 2011-03-10 Romuald Elie , Idris Kharroubi

We discuss a general dynamic replication approach to counterparty credit risk modeling. This leads to a fundamental jump-process backward stochastic differential equation (BSDE) for the credit risk adjusted portfolio value. We then reduce…

Risk Management · Quantitative Finance 2016-08-18 Andrew Lesniewski , Anja Richter

We investigate the well-posedness of stochastic differential equations driven by fractional Brownian motion, focusing on the long-range dependent case $H \in (\frac{1}{2}, 1)$. While existing results on regularization by such noise…

Probability · Mathematics 2025-07-01 Maximilian Buthenhoff , Ercan Sönmez