Nematrian
/

Discounting [27]

Go to: Summary | Previous | Next   
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

NAVIGATION LINKS
Contents | Prev | Next | Library

Desktop view | Switch to Mobile