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This paper studies an optimal forward investment problem in an incomplete market with model uncertainty, in which the underlying stocks depend on the correlated stochastic factors. The uncertainty stems from the probability measure chosen…

投资组合管理 · 定量金融 2021-05-05 Juan Li , Wenqiang Li , Gechun Liang

We introduce and solve a new type of quadratic backward stochastic differential equation systems defined in an infinite time horizon, called \emph{ergodic BSDE systems}. Such systems arise naturally as candidate solutions to characterize…

概率论 · 数学 2020-06-29 Ying Hu , Gechun Liang , Shanjian Tang

This article constructs a forward exponential utility in a market with multiple defaultable risks. Using the Jacod-Pham decomposition for random fields, we first characterize forward performance processes in a defaultable market under the…

数理金融 · 定量金融 2026-01-06 Wing Fung Chong , Roxana Dumitrescu , Gechun Liang , Kenneth Tsz Hin Ng

We study the forward investment performance process (FIPP) in an incomplete semimartingale market model with closed and convex portfolio constraints, when the investor's risk preferences are of the power form. We provide necessary and…

概率论 · 数学 2022-01-27 Lijun Bo , Agostino Capponi , Chao Zhou

In this paper, we present a probabilistic numerical method for a class of forward utilities in a stochastic factor model. For this purpose, we use the representation of dynamic consistent utilities with mean of ergodic Backward Stochastic…

Using elements from the theory of ergodic backward stochastic differential equations (BSDE), we study the behavior of forward entropic risk measures. We provide their general representation results (via both BSDE and convex duality) and…

数理金融 · 定量金融 2017-04-18 Wing Fung Chong , Ying Hu , Gechun Liang , Thaleia Zariphopoulou

In this paper we look at ergodic BSDEs in the case where the forward dynamics are given by the solution to a non-autonomous (time-periodic coefficients) Ornstein-Uhlenbeck SDE with L\'evy noise, taking values in a separable Hilbert space.…

概率论 · 数学 2015-11-11 Samuel N. Cohen , Victor Fedyashov

We extend the notion of forward performance criteria to settings with random endowment in incomplete markets. Building on these results, we introduce and develop the novel concept of \textit{forward optimized certainty equivalent (forward…

投资组合管理 · 定量金融 2025-10-29 Gechun Liang , Yifan Sun , Thaleia Zariphopoulou

In this paper we study a class of infinite horizon fully coupled forward-backward stochastic differential equations (FBSDEs), that are stimulated by various continuous time future expectations models with random coefficients. Under standard…

The present paper is devoted to the study of the asymptotic behavior of the value functions of both finite and infinite horizon stochastic control problems and to the investigation of their relation with suitable stochastic ergodic control…

概率论 · 数学 2018-04-06 Andrea Cosso , Giuseppina Guatteri , Gianmario Tessitore

We consider an infinite horizon, obliquely reflected backward stochastic differential equation (RBSDE). The main contribution of the present work is that we generalize previous results on infinite horizon reflected BSDEs to the setting…

概率论 · 数学 2023-09-21 Magnus Perninge

In this paper we study an Ergodic Markovian BSDE involving a forward process $X$ that solves an infinite dimensional forward stochastic evolution equation with multiplicative and possibly degenerate diffusion coefficient. A concavity…

最优化与控制 · 数学 2019-10-14 G. Guatteri , G. Tessitore

We consider the problem of optimal portfolio selection under forward investment performance criteria in an incomplete market. Given multiple traded assets, the prices of which depend on multiple observable stochastic factors, we construct a…

数理金融 · 定量金融 2018-05-15 Levon Avanesyan , Mykhaylo Shkolnikov , Ronnie Sircar

We consider the problem of optimal portfolio selection under forward investment performance criteria in an incomplete market. The dynamics of the prices of the traded assets depend on a pair of stochastic factors, namely, a slow factor…

数理金融 · 定量金融 2015-09-25 Mykhaylo Shkolnikov , Ronnie Sircar , Thaleia Zariphopoulou

We consider a robust asymptotic growth problem under model uncertainty in the presence of stochastic factors. We fix two inputs representing the instantaneous covariance for the asset price process $X$, which depends on an additional…

数理金融 · 定量金融 2025-12-19 David Itkin , Benedikt Koch , Martin Larsson , Josef Teichmann

Consider a discrete-time infinite horizon financial market model in which the logarithm of the stock price is a time discretization of a stochastic differential equation. Under conditions different from those given in a previous paper of…

最优化与控制 · 数学 2014-06-23 Martin Le Doux Mbele Bidima , Miklós Rásonyi

The aim is to prove the well-posedness of infinite horizon backward stochastic differential equations driven by $G$-Brownian motion ($G$-BSDEs) with quadratic generators. To this end, we provide a full construction of explicit solutions to…

概率论 · 数学 2025-09-09 Yiqing Lin , Yifan Sun , Falei Wang

The present paper considers a new kind of backward stochastic differential equations driven by G-Brownian motion, which is called ergodic G-BSDEs. Firstly, the well-posedness of G-BSDEs with infinite horizon is given by a new linearization…

概率论 · 数学 2017-01-13 Mingshang Hu , Falei Wang

Although financial models violate ergodicity in general, observing the ergodic behavior in the markets is not rare. Policymakers and market participants control the market behavior in critical and emergency states, which leads to some…

概率论 · 数学 2023-12-27 Kiarash Firouzi , Mohammad Jelodari Mamaghani

We study the expected utility maximization problem of a large investor who is allowed to make transactions on tradable assets in an incomplete financial market with endogenous permanent market impacts. The asset prices are assumed to follow…

数理金融 · 定量金融 2026-01-23 Thai Nguyen , Mitja Stadje
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