FinancePy

FinancePy API Reference

Cds Basket

financepy.products.credit.cds_basket

Classes

CDSBasket

CDSBasket(step_in_dt: financepy.utils.date.Date, maturity_dt: financepy.utils.date.Date, notional: float = 1000000, running_cpn: float = 0.0, long_protect: bool = True, freq_type: financepy.utils.frequency.FrequencyTypes = <FrequencyTypes.QUARTERLY: 4>, accrual_dc_type: financepy.utils.day_count.DayCountTypes = <DayCountTypes.ACT_360: 8>, cal_type: financepy.utils.calendar.CalendarTypes | list | tuple = <CalendarTypes.WEEKEND: 2>, bd_type: financepy.utils.calendar.BusDayAdjustTypes = <BusDayAdjustTypes.FOLLOWING: 2>, dg_type: financepy.utils.calendar.DateGenRuleTypes = <DateGenRuleTypes.BACKWARD: 2>)
Class to deal with n-to-default CDS baskets.

Methods

value_legs_mc_old

value_legs_mc_old(self, value_dt, n_to_default, default_times, issuer_curves, libor_curve)
Value the legs of the default basket using Monte Carlo. The default times are an input so this valuation is not model dependent.

value_legs_mc

value_legs_mc(self, value_dt, n_to_default, default_times, issuer_curves, libor_curve)
Value the premium PV01 and protection legs of an n-to-default basket via Monte Carlo `default_times` is (num_credits x num_trials) of default times in YEARS from value_dt. The valuation is pathwise (no model dependence beyond the given default times).

value_gaussian_mc

value_gaussian_mc(self, value_dt, n_to_default, issuer_curves, corr_matrix, libor_curve, num_trials, seed)
Value the default basket using a Gaussian copula model. This depends on the issuer discount and correlation matrix.

value_student_t_mc

value_student_t_mc(self, value_dt, n_to_default, issuer_curves, corr_matrix, degrees_of_freedom, libor_curve, num_trials, seed)
Value the default basket using the Student-T copula.

value_1f_gaussian_homo

value_1f_gaussian_homo(self, value_dt, n_to_default, issuer_curves, beta_vector, libor_curve, num_points=50)
Value default basket using 1 factor Gaussian copula and analytical approach which is only exact when all recovery rates are the same.
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