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Analytical scores for stress scenarios (2007.02567v1)

Published 6 Jul 2020 in q-fin.RM

Abstract: In this work, inspired by the Archer-Mouy-Selmi approach, we present two methodologies for scoring the stress test scenarios used by CCPs for sizing their Default Funds. These methodologies can be used by risk managers to compare different sets of scenarios and could be particularly useful when evaluating the relevance of adding new scenarios to a pre-existing set.

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