Risk Latte - The Financial Engineering Resource

Markets

Market Turbulence of 2007-2008 and a Rethink of the Volatility Models

The collapse of Lehman Brothers at the end of 2008 brought great turbulence to the equity and credit markets around the world. Besides the major equity markets such as S&P500,

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Quantitative Finance

The Allure of the Libor Market Model (LMM)

Libor Market Models (LMM), also sometimes referred to as the Market Model of Interest Rates, has come to dominate the interest rate modeling space. History of the

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History

The Italian Navigator and the Uncertain New World

In 1492 an Italian navigator, in the face of harrowingopposition and great uncertainty, discovered a new world. In 1942, another great Italian navigator discovered

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Financial & Economic Analysis

Jeremy Grantham on Commodities

Jeremy Grantham's latest quarterly is an absolute masterpiece and focuses on an extremely important topic – the looming shortage of natural resources and the resulting rise in their prices.It is a long piece (18 pages) and I have summarised below what I believe to be the key points,

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