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We consider stochastic (partial) differential equations appearing as Markovian lifts of affine Volterra processes with jumps from the point of view of the generalized Feller property which was introduced in e.g.~\cite{doetei:10}. In…

Probability · Mathematics 2019-08-05 Christa Cuchiero , Josef Teichmann

We introduce affine Volterra processes, defined as solutions of certain stochastic convolution equations with affine coefficients. Classical affine diffusions constitute a special case, but affine Volterra processes are neither…

Probability · Mathematics 2019-10-23 Eduardo Abi Jaber , Martin Larsson , Sergio Pulido

We introduce an abstract Hilbert space-valued framework of Markovian lifts for stochastic Volterra equations with operator-valued Volterra kernels. Our main results address the existence and characterisation of possibly multiple limit…

Probability · Mathematics 2026-05-21 Luigi Amedeo Bianchi , Stefano Bonaccorsi , Ole Cañadas , Martin Friesen

We characterize the Markovian and affine structure of the Volterra Heston model in terms of an infinite-dimensional adjusted forward process and specify its state space. More precisely, we show that it satisfies a stochastic partial…

Probability · Mathematics 2018-03-02 Eduardo Abi Jaber , Omar El Euch

We show the existence of a broad class of affine Markov processes in the cone of positive self-adjoint Hilbert-Schmidt operators. Such processes are well-suited as infinite dimensional stochastic volatility models. The class of processes we…

Probability · Mathematics 2022-01-28 Sonja Cox , Sven Karbach , Asma Khedher

We show the existence of a stationary measure for a class of multidimensional stochastic Volterra systems of affine type. These processes are in general not Markovian, a shortcoming which hinders their large-time analysis. We circumvent…

Probability · Mathematics 2025-09-18 Antoine Jacquier , Alexandre Pannier , Konstantinos Spiliopoulos

We propose a new theoretical framework that exploits convolution kernels to transform a Volterra-type path-dependent (non-Markovian) stochastic process into a standard (Markovian) diffusion process. Remarkably, it is also possible to go…

Mathematical Finance · Quantitative Finance 2025-10-10 Ofelia Bonesini , Giorgia Callegaro , Martino Grasselli , Gilles Pagès

We introduce the Volterra Stein-Stein model with stochastic interest rates, where both volatility and interest rates are driven by correlated Gaussian Volterra processes. This framework unifies various well-known Markovian and non-Markovian…

Mathematical Finance · Quantitative Finance 2025-07-17 Eduardo Abi Jaber , Donatien Hainaut , Edouard Motte

The theory of affine processes has been recently extended to the framework of stochastic Volterra equations with continuous trajectories. These so-called affine Volterra processes overcome modeling shortcomings of affine processes because…

Probability · Mathematics 2022-03-15 Alessandro Bondi , Giulia Livieri , Sergio Pulido

This paper is devoted to establishing the full scaling limit theorems for multivariate Hawkes processes. Under some mild conditions on the exciting kernels, we develop a new way to prove that after a suitable time-spatial scaling, the…

Probability · Mathematics 2024-12-20 Wei Xu

We investigate Markovian lifts of stochastic Volterra equations (SVEs) with completely monotone kernels and general coefficients within a class of weighted Sobolev spaces. Our primary focus is developing a comprehensive solution theory for…

Probability · Mathematics 2025-03-17 Florian Huber

We establish an explicit expression for the conditional Laplace transform of the integrated Volterra Wishart process in terms of a certain resolvent of the covariance function. The core ingredient is the derivation of the conditional…

Probability · Mathematics 2024-07-09 Eduardo Abi Jaber

We consider rough stochastic volatility models where the variance process satisfies a stochastic Volterra equation with the fractional kernel, as in the rough Bergomi and the rough Heston model. In particular, the variance process is…

Computational Finance · Quantitative Finance 2022-07-19 Christian Bayer , Simon Breneis

We investigate the probabilistic and analytic properties of Volterra processes constructed as pathwise integrals of deterministic kernels with respect to the H\"older continuous trajectories of Hilbert-valued Gaussian processes. To this…

Probability · Mathematics 2020-06-01 Fred E. Benth , Fabian A. Harang

This paper provides a Feller's test for explosions of one-dimensional continuous stochastic Volterra processes of convolution type. The study focuses on dynamics governed by nonsingular kernels, which preserve the semimartingale property of…

Probability · Mathematics 2024-06-21 Alessandro Bondi , Sergio Pulido

We study the class of continuous polynomial Volterra processes, which we define as solutions to stochastic Volterra equations driven by a continuous semimartingale with affine drift and quadratic diffusion matrix in the state of the…

Probability · Mathematics 2024-03-22 Eduardo Abi Jaber , Christa Cuchiero , Luca Pelizzari , Sergio Pulido , Sara Svaluto-Ferro

Memory-driven stochastic dynamics arise naturally in many applications, and stochastic Volterra equations (SVEs) offer a flexible framework for modeling such systems. Their convolution structure with Volterra kernels endows the dynamics…

Probability · Mathematics 2025-12-10 Martin Friesen , Stefan Gerhold , Kristof Wiedermann

We put forward a complete theory on moment explosion for fairly general state-spaces. This includes a characterization of the validity of the affine transform formula in terms of minimal solutions of a system of generalized Riccati…

Probability · Mathematics 2016-01-07 Eberhard Mayerhofer

We introduce a flexible and tractable infinite-dimensional stochastic volatility model. More specifically, we consider a Hilbert space valued Ornstein-Uhlenbeck-type process, whose instantaneous covariance is given by a pure-jump stochastic…

Probability · Mathematics 2021-08-06 Sonja Cox , Sven Karbach , Asma Khedher

In industrial applications it is quite common to use stochastic volatility models driven by semi-martingale Markov volatility processes. However, in order to fit exactly market volatilities, these models are usually extended by adding a…

Pricing of Securities · Quantitative Finance 2022-06-22 Enrico Dall'Acqua , Riccardo Longoni , Andrea Pallavicini
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