Discounting [27]

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Bullet points include: Deflators: a very ‘actuarial’ approach to bridging the gap between risk-free rates and risk-adjusted rates Are stochastic discount factors though which a set of real-world scenarios may be filtered to produce a market-consistent valuation Rarely used outside actuarial world Currency risk: use forward rates rather than risk-free rates? Sovereign risk: but note that liability usually relates to contractual terms between e.g. insurer and policyholder rather than involving sovereign itself Credit risk (including own credit risk) and liquidity risk

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