Modelling interest rates: Cox-Ingersoll-Ross model explained (Excel)

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  • Опубліковано 29 січ 2025

КОМЕНТАРІ • 14

  • @NEDLeducation
    @NEDLeducation  2 роки тому

    You can find the spreadsheets for this video and some additional materials here: drive.google.com/drive/folders/1sP40IW0p0w5IETCgo464uhDFfdyR6rh7
    Please consider supporting NEDL on Patreon: www.patreon.com/NEDLeducation

  • @uchiha9120
    @uchiha9120 2 роки тому +2

    Great video, can you please make a video on how to make the forecasts

  • @user-wu2fq3vb1d
    @user-wu2fq3vb1d Рік тому

    Hi there! Thanks so much for creating these really useful and insightful videos.
    If possible can you show how to implement a discretised CIR process in Excel and how the volatility is scaled by the level of rate. Thanks!

  • @moatazsabi8771
    @moatazsabi8771 11 місяців тому

    Absolutely great, clear and relevant explanation, as for all video. Really thank you, your channels is a blessing for professionals trying to improve their understanding.
    I also have implemented the CIR model using even more recent mortgage rates, and I notice that the model stops being significant as soon as we include the 2020 period and beyond, do you have any insight on that ?

  • @carlosrivas2744
    @carlosrivas2744 2 роки тому

    Hello, Savva!!! Really glad to have people such as yourself who can explain complex topics in an easy and intuitive way. I just have one question: in order to forecast the interest rate for the next period (t+1), would you use the same equation as in the Vasicek model?

  • @reubenmarfo9855
    @reubenmarfo9855 10 місяців тому

    how do you use the parameters to forecast?

  • @yuntongliJames
    @yuntongliJames Рік тому

    Hey man, thanks for recording these videos. Just tried it on Euribor, didn't really work as the P values are extremely high. Do you maybe have any suggestions to solve it?

  • @surendrabarsode8959
    @surendrabarsode8959 2 роки тому +1

    Very well explained. Can you also indicate which books or articles you referred for the various formulas? That will be helpful for further understanding of the topic. Thanks!!!

    • @NEDLeducation
      @NEDLeducation  2 роки тому

      Hi Surendra, and glad you liked the video! I do have a collection of free-to-access journal articles that informed my videos on my Google Drive so please check out the pinned comment!

    • @surendrabarsode8959
      @surendrabarsode8959 2 роки тому

      @@NEDLeducation Thanks Savva. Warm regards.

  •  2 роки тому +1

    Great content. Can you also do it on the Heston Model for some stock price by estimating the parameters using the historical price data?

    • @NEDLeducation
      @NEDLeducation  2 роки тому +1

      Hi Mehmet, and glad you are enjoying the channel! I am actually planning to release a video on Heston's model very soon, thanks for the suggestion!

  • @MrMahankumar
    @MrMahankumar 2 роки тому

    Hey man great!!!!! This is a very applied topic and I didn't even know it exists! Thanks Sava for uploading this!

  • @emmamugo4545
    @emmamugo4545 Рік тому

    Which would you recommend, CIR or Vasieck?