The owner of a mortgage can decide to repay his loan before the contractual maturity, completely or in part, in most cases without suffering any penalty. This might happen for a number of reasons which can go even beyond market driven incentives - ie. a more favourable general level of interest...

It is common belief that Exchange Traded Derivatives (ETDs), e.g. Futures and Futures Options, are collateralized plain vanilla financial instruments carrying low counterparty risk and capital requirements with respect to corresponding Over The Counter Derivatives (OTCDs). In this paper we...