rate risk and credit risk. Our methodology is used to determine premia on credit risk and interest rate risk for commercial … banks, which in turn allows us to manage the risk allocation for a bank given a risk budget. Moreover, our approach will be … of interest to regulators, who can use it to assess the market price of credit and interest rate risk at each point in …

uses the future in order to generate present wealth. Financial markets sell and buy risk, thereby binding the future. Elena … Esposito explains that complex risk management techniques of structured finance produce new and uncontrolled risks because they …