Language: | Slovenian |
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Year of publishing: | 2019 |
Typology: | 2.09 - Master's Thesis |
Organization: | UL FMF - Faculty of Mathematics and Physics |
Publisher: | [U. Bele] |
UDC: | 519.2 |
COBISS: | 18772569 |
Views: | 1451 |
Downloads: | 293 |
Average score: | 0 (0 votes) |
Metadata: |
Secondary language: | English |
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Secondary title: | The modelling of the term structure of German Government Bonds by using the ACM Model |
Secondary abstract: | Market agents can invest in short- or long-term bonds. The latter are more exposed to various types of market risks. This is why the risk-averse investors demand a compensation in a form of risk premium. A nominal yield can be decomposed into two components: risk-neutral yield and term premium. None of the components is directly observable, therefore they need to be estimated by using econometric models. The present thesis covers a detailed mathematical derivation of the ACM model and its application to the modelling of the term structure of German government bonds. It assesses and compares the in- and out-of-sample performance of the model's variations. In-sample analysis includes approximation and decomposition of the term structure of interest rates. The dynamics of both components over time is interpreted from the macroeconomic point of view. Out-of-sample analysis generates and compares short-rate predictions up to three years ahead. |
Secondary keywords: | yield curve;risk-free interest rate;expectation theory;term structure;term premium;affine term structure model;pricing kernel;market price of risk;pricing factor;linear regression;principal component analysis; |
Type (COBISS): | Master's thesis/paper |
Study programme: | 0 |
Embargo end date (OpenAIRE): | 1970-01-01 |
Thesis comment: | Univ. v Ljubljani, Fak. za matematiko in fiziko, Oddelek za matematiko, Finančna matematika - 2. stopnja |
Pages: | XVI, 73 str. |
ID: | 11270660 |