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Interest Rate Modelling for Counterparty Credit Risk (HJM)

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Skills Gained (Andrew Green)

  • Develop a new XVA platform
  • CUDA GPU / C++ (11) CPU Hybrid Compute environment
  • Grid Computing
  • Adjoint Algorithmic Differentiation (AAD): CPU/GPU implementation using NAG dco/dco_map
  • Multi-asset platform: IR & FX, later inflation, commodities and equity derivatives
  • Deep Learning applications in XVA

cva / interest rate swap / hjm interest rate model

Reduced memory usage and batched Monte Carlo simulation to be suitable for CUDA acceleration [02/06/2020] See Method MonteCarloSimulation::generatePath in header simulation.h

Use boost function boost::math::erf_inv to generate gaussian variates based on a merssene twister uniform random generator [02/06/2020]

Use Intel MKL to generate gaussian variates based on a merssene twister uniform random generator [07/06/2020]

Fixed The Exposure Calculation profile for a given Interest Rate Swap Mark to Market [09/06/2020]

Added new dissertation notes with the Reference used during the study [09/06/2020]

Finished MonteCarlo Convergence for IRS Expected Exposure with a 0.01 accuracy and 4750 simulations on each simulation point.[14/06/2020]

TODO - Estimate the stddev and confidence interval for simulations

TODO - Apply a variance reduction method on HJM model for risk factor evolution to speed up the MC convergence

TODO - Transpose the Exposure matrix and check for memory bandwidth usage improvement

TODO - Modify YieldCurve calculation DF(t, T) and ForwardRates F(t;t, T). Data must be accessed using a linearized array

TODO - Implement a CUDA Accelerated Kernel for HJM simulation

TODO - Benchmark the solution Measure Performance

TODO - Support negatives Interest Rates

TODO - Perform sensitivity Analysis with AAD

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