The two main issues for managing wrong way risk (WWR) for the credit valuation adjustment (CVA, i.e. WW-CVA) are …

' prices, expected returns, risk exposure, and optimal exercise policies respond to variations in the risk exposure of the … underlying asset. The model allows one to separate the effects from changes in idiosyncratic versus systematic risk. Among the … new insights we establish are that i) call prices typically respond negatively to increases in systematic risk, ii) the …

out some key issues on how the credit risk associated to these products can be reduced and, finally, in the last section …

We study the term structure of variance (total risk), systematic and idiosyncratic risk. Consistent with the …

, arbitrage and hedging strategies. But when the risk rate sensitive derivatives are not a plain vanilla derivatives is not very … simple to price them. The second/third generation of interest rate derivatives have, in fact, a complex payoff and a risk … profile difficult to quantify. The pricing of risk rate sensitive derivatives of the second/third generation require the use …

Adverse weather related risk is a main source of crop production loss and a big concern for agricultural insurers and … reinsurers. In response, weather risk hedging may be valuable, however, due to basis risk it has been largely unsuccessful to … dependence of weather risk to reduce basis risk. The analysis shows that the LSHAC model can improve the hedging performance …

Weather derivatives are financial instruments that can be used by organizations or individuals as part of a risk … management strategy to minimize risk associated with adverse or unexpected weather conditions. Just as traditional contingent … claims, a weather derivative has an underlying measure, such as: rainfall, wind, snow or temperature. Nearly $1 trillion of …

credit risk and outline liquidity alternatives to this such as the use of sector and index CDS contracts …