Efficient Simulations for A Bernoulli Mixture Model of Portfolio Credit Risk

来源 :第八届工业与应用数学国际大会 | 被引量 : 0次 | 上传用户:marriamirror
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  We consider the problem of calculating tail loss probability and conditional excess for the Bernoulli mixture model of credit risk.This is an important problem as all credit risk models proposed in literature can be represented as Bernoulli mixture models.The algorithm we propose is a combination of stratification,importance sampling based on cross-entropy,and inner replications using the geometric shortcut method.We evaluate the efficiency of our general method on specific credit risk models.
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