Training a Multi-Layer Perceptron (MLP) to achieve a minimum level of MSE is akin to doing Non-Linear Regression (NLR). Therefore, we use available econometric theory and the corresponding tools in R. Only if certain assumptions about the error term in the Data Generating Process are in place,...

The Global Financial Crisis had a severe impact on the commodity markets on top of the well-known effects on the worldwide economy. Not only the demand for commodities decreased severely thereby hurting the creditworthiness of participants in the wholesale commodity markets, but also the...

The no-arbitrage model by Schonbucher is combined with the extended Vasicek Term Structure Model and applied to the pricing of sovereign bonds. Practical hedging according to the model is investigated. A portfolio of bonds is investigated using the risk measures "shortfall" and "Value at Risk".A...