VaR helps quantify investment risk by modeling potential losses in portfolios or stocks. Three main VaR methods are historical, variance-covariance, and Monte Carlo simulation. Using VaR with other ...

The potential for investment losses that arise due to a change in interest rate is categorized as Interest rate risk. If the interest rate rises, the bond value or the value of other fixed-income ...

Downside risk refers to the potential for an investment to decrease in value. Unlike general risk, which considers both upward and downward price movements, downside risk focuses solely on the ...

Predicting future value-at-risk is an important problem in finance. It arises in the modeling of future initial margin requirements for counterparty credit risk and future market value-at-risk. We are ...

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This article was written by David Mullen, Product Manager for Core Fixed-Income Analytics, and Fateen Sharaby, Business Manager for Index-Linked Products at Bloomberg. Credit futures, which started ...

Residual value is the estimated value of an asset at the end of its useful life. It's used to figure out things like the value of a car at the end of a lease or how much equipment is worth after it's ...