Rethinking Valuation and Pricing Models

Foreword

By the editors

The recent years were characterized by first the financial crisis and then the sovereign crisis that created many pitfalls for the valuation and risk management of financial products. The unprecedented financial losses both in the private and institutional sectors around the world aling with the near collapse of the global banking industry have occurred despite highly praised advances in risk management methodologies, such as regulatory developments meant to safeguard the financial system. On the other hand, during the last decade, the volume of financial derivatives increased dramatically and thus the related valuation methods and risk management processes were further developed. Even the theory of blaming “the models” ...