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Thesis

Structural models of credit with default contagion

Abstract:

Multi-asset credit derivatives trade in huge volumes, yet no models exist that are capable of properly accounting for the spread behaviour of dependent companies. In this thesis we consider new ways of incorporating a richer and more realistic dependence structure into multi-firm models. We focus on the structural framework in which firm value is modelled as a geometric Brownian motion, with default as the first hitting time of an exponential default threshold. Specification of a dependence s...

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Publisher:
University of Oxford;Mathematical Institute
Publication date:
2006
UUID:
uuid:8c281f6b-b4ce-4d69-b638-12f25648616b
Local pid:
oai:eprints.maths.ox.ac.uk:554
Deposit date:
2011-05-19

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