Hi
I am working in Fixed-income department and I would like to know how to choose the correct model (1, 2 or 3 factors) for the given products and the reason why we choose a model:
- credit default swaps
- inflation swaps
- bond options (callable bond, puttable bond, convertible bond, extendible bond; exchangeable bond)
- swaptions on rates
- bermudan
-barrier options
- american options (vanilla or barrier)
- quanto adjustment for IR options
- IR options
- cross currency swaps
- variance swaps
- TARN, Range accrual, TARF
-other types of derivatives needed a model?
Thanks,
Regards.