Machine learning for risk calculations : a practitioner's view /

"The computational demand of risk calculations in financial institutions has ballooned. Traditionally, this has led to the acquisition of more and more computer power -- some banks have farms in the order of 50,000 CPUs, with running costs in the multimillions of dollars -- but this path is no...

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Bibliographic Details
Main Authors: Ruiz, Ignacio, 1972- (Author), Laris, Mariano Zeron Medina (Author)
Format: eBook
Language:English
Published: Hoboken, New Jersey : Wiley, [2022]
Series:Wiley finance series.
Subjects:
Online Access:Connect to the full text of this electronic book
Table of Contents:
  • Fundamental Approximation Methods. Machine Learning
  • Deep Neural Nets
  • Chebyshev Tensors
  • The toolkit - plugging in approximation methods. Introduction: why is a toolkit needed
  • Composition techniques
  • Tensors in TT format and Tensor Extension Algorithms
  • Sliding Technique
  • The Jacobian projection technique
  • Hybrid solutions - approximation methods and the toolkit. Introduction
  • The Toolkit and Deep Neural Nets
  • The Toolkit and Chebyshev Tensors
  • Hybrid Deep Neural Nets and Chebyshev Tensors Frameworks
  • Applications. The aim
  • When to use Chebyshev Tensors and when to use Deep Neural Nets
  • Counterparty credit risk
  • Market Risk
  • Dynamic sensitivities
  • Pricing model calibration
  • Approximation of the implied volatility function
  • Optimisation Problems
  • Pricing Cloning
  • XVA sensitivities
  • Sensitivities of exotic derivatives
  • Software libraries relevant to the book
  • Appendices. Families of orthogonal polynomials
  • Exponential convergence of Chebyshev Tensors
  • Chebyshev Splines on functions with no singularity points
  • Computational savings details for CCR
  • Computational savings details for dynamic sensitivities
  • Dynamic sensitivities on the market space
  • Dynamic sensitivities and IM via Jacobian Projection technique
  • MVA optimisation - further computational enhancement.