Two Curve Discounting

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Abstract

The global financial crisis of 2008 led to a rethinking of many valuation models in fixed income. The notion of the risk free rate and the appropriate discount rate underwent substantial changes. By around 2010, a consensus emerged on the “Two Curve” model. This technical note provides an introduction to this model and also suggestions for further reading.

Additional Information

Product Type Technical Note
Reference No. F&A0507TEC
Title Two Curve Discounting
Pages 14
Published on May 21, 2013
Authors Varma, Jayanth R.;
Area Finance and Accounting (F&A)

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