IndexFundCurvesReconciliation.java
package org.drip.sample.ois;
import java.util.*;
import org.drip.analytics.date.DateUtil;
import org.drip.analytics.date.JulianDate;
import org.drip.analytics.support.*;
import org.drip.function.r1tor1.QuadraticRationalShapeControl;
import org.drip.numerical.common.*;
import org.drip.param.creator.*;
import org.drip.param.market.CurveSurfaceQuoteContainer;
import org.drip.param.period.*;
import org.drip.param.valuation.*;
import org.drip.product.creator.*;
import org.drip.product.definition.CalibratableComponent;
import org.drip.product.rates.*;
import org.drip.service.env.EnvManager;
import org.drip.spline.basis.PolynomialFunctionSetParams;
import org.drip.spline.params.*;
import org.drip.spline.stretch.*;
import org.drip.state.creator.ScenarioDiscountCurveBuilder;
import org.drip.state.discount.*;
import org.drip.state.estimator.LatentStateStretchBuilder;
import org.drip.state.identifier.*;
import org.drip.state.inference.*;
/*
* -*- mode: java; tab-width: 4; indent-tabs-mode: nil; c-basic-offset: 4 -*-
*/
/*!
* Copyright (C) 2018 Lakshmi Krishnamurthy
* Copyright (C) 2017 Lakshmi Krishnamurthy
* Copyright (C) 2016 Lakshmi Krishnamurthy
* Copyright (C) 2015 Lakshmi Krishnamurthy
* Copyright (C) 2014 Lakshmi Krishnamurthy
*
* This file is part of DRIP, a free-software/open-source library for buy/side financial/trading model
* libraries targeting analysts and developers
* https://lakshmidrip.github.io/DRIP/
*
* DRIP is composed of four main libraries:
*
* - DRIP Fixed Income - https://lakshmidrip.github.io/DRIP-Fixed-Income/
* - DRIP Asset Allocation - https://lakshmidrip.github.io/DRIP-Asset-Allocation/
* - DRIP Numerical Optimizer - https://lakshmidrip.github.io/DRIP-Numerical-Optimizer/
* - DRIP Statistical Learning - https://lakshmidrip.github.io/DRIP-Statistical-Learning/
*
* - DRIP Fixed Income: Library for Instrument/Trading Conventions, Treasury Futures/Options,
* Funding/Forward/Overnight Curves, Multi-Curve Construction/Valuation, Collateral Valuation and XVA
* Metric Generation, Calibration and Hedge Attributions, Statistical Curve Construction, Bond RV
* Metrics, Stochastic Evolution and Option Pricing, Interest Rate Dynamics and Option Pricing, LMM
* Extensions/Calibrations/Greeks, Algorithmic Differentiation, and Asset Backed Models and Analytics.
*
* - DRIP Asset Allocation: Library for model libraries for MPT framework, Black Litterman Strategy
* Incorporator, Holdings Constraint, and Transaction Costs.
*
* - DRIP Numerical Optimizer: Library for Numerical Optimization and Spline Functionality.
*
* - DRIP Statistical Learning: Library for Statistical Evaluation and Machine Learning.
*
* Licensed under the Apache License, Version 2.0 (the "License");
* you may not use this file except in compliance with the License.
*
* You may obtain a copy of the License at
* http://www.apache.org/licenses/LICENSE-2.0
*
* Unless required by applicable law or agreed to in writing, software
* distributed under the License is distributed on an "AS IS" BASIS,
* WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
*
* See the License for the specific language governing permissions and
* limitations under the License.
*/
/**
* IndexFundCurvesReconciliation demonstrates the Construction, Usage, Coupon Extraction and Measure
* Generation for an OIS Product Sample using the Index and the Fund Curves, and their Reconciliation.
*
* @author Lakshmi Krishnamurthy
*/
public class IndexFundCurvesReconciliation {
/*
* Construct the Array of Deposit Instruments from the given set of parameters
*
* USE WITH CARE: This sample ignores errors and does not handle exceptions.
*/
private static final SingleStreamComponent[] DepositInstrumentsFromMaturityDays (
final JulianDate dtEffective,
final String strCurrency,
final int[] aiDay)
throws Exception
{
SingleStreamComponent[] aDeposit = new SingleStreamComponent[aiDay.length];
for (int i = 0; i < aiDay.length; ++i)
aDeposit[i] = SingleStreamComponentBuilder.Deposit (
dtEffective,
dtEffective.addBusDays (
aiDay[i],
strCurrency
),
OvernightLabel.Create (
strCurrency
)
);
return aDeposit;
}
/*
* Construct the Array of Overnight Index Instruments from the given set of parameters
*
* USE WITH CARE: This sample ignores errors and does not handle exceptions.
*/
private static final FixFloatComponent[] OvernightIndexFromMaturityTenor (
final JulianDate dtEffective,
final String[] astrMaturityTenor,
final double[] adblCoupon,
final String strCurrency)
throws Exception
{
FixFloatComponent[] aOIS = new FixFloatComponent[astrMaturityTenor.length];
UnitCouponAccrualSetting ucasFixed = new UnitCouponAccrualSetting (
2,
"Act/360",
false,
"Act/360",
false,
strCurrency,
false,
CompositePeriodBuilder.ACCRUAL_COMPOUNDING_RULE_GEOMETRIC
);
CashSettleParams csp = new CashSettleParams (
0,
strCurrency,
0
);
for (int i = 0; i < astrMaturityTenor.length; ++i) {
java.lang.String strFixedTenor = Helper.LEFT_TENOR_LESSER == Helper.TenorCompare (
astrMaturityTenor[i],
"6M"
) ? astrMaturityTenor[i] : "6M";
java.lang.String strFloatingTenor = Helper.LEFT_TENOR_LESSER == Helper.TenorCompare (
astrMaturityTenor[i],
"3M"
) ? astrMaturityTenor[i] : "3M";
ComposableFloatingUnitSetting cfusFloating = new ComposableFloatingUnitSetting (
"ON",
CompositePeriodBuilder.EDGE_DATE_SEQUENCE_OVERNIGHT,
null,
OvernightLabel.Create (
strCurrency
),
CompositePeriodBuilder.REFERENCE_PERIOD_IN_ADVANCE,
0.
);
ComposableFixedUnitSetting cfusFixed = new ComposableFixedUnitSetting (
strFixedTenor,
CompositePeriodBuilder.EDGE_DATE_SEQUENCE_REGULAR,
null,
adblCoupon[i],
0.,
strCurrency
);
CompositePeriodSetting cpsFloating = new CompositePeriodSetting (
4,
strFloatingTenor,
strCurrency,
null,
-1.,
null,
null,
null,
null
);
CompositePeriodSetting cpsFixed = new CompositePeriodSetting (
2,
strFixedTenor,
strCurrency,
null,
1.,
null,
null,
null,
null
);
List<Integer> lsFixedStreamEdgeDate = CompositePeriodBuilder.RegularEdgeDates (
dtEffective,
strFixedTenor,
astrMaturityTenor[i],
null
);
List<Integer> lsFloatingStreamEdgeDate = CompositePeriodBuilder.RegularEdgeDates (
dtEffective,
strFloatingTenor,
astrMaturityTenor[i],
null
);
Stream floatingStream = new Stream (
CompositePeriodBuilder.FloatingCompositeUnit (
lsFloatingStreamEdgeDate,
cpsFloating,
cfusFloating
)
);
Stream fixedStream = new Stream (
CompositePeriodBuilder.FixedCompositeUnit (
lsFixedStreamEdgeDate,
cpsFixed,
ucasFixed,
cfusFixed
)
);
FixFloatComponent ois = new FixFloatComponent (
fixedStream,
floatingStream,
csp
);
ois.setPrimaryCode ("OIS." + astrMaturityTenor[i] + "." + strCurrency);
aOIS[i] = ois;
}
return aOIS;
}
/*
* Construct the Array of Overnight Fund Instruments from the given set of parameters
*
* USE WITH CARE: This sample ignores errors and does not handle exceptions.
*/
private static final FixFloatComponent[] OvernightFundFromMaturityTenor (
final JulianDate dtEffective,
final String[] astrMaturityTenor,
final double[] adblCoupon,
final String strCurrency)
throws Exception
{
FixFloatComponent[] aOIS = new FixFloatComponent[astrMaturityTenor.length];
UnitCouponAccrualSetting ucasFixed = new UnitCouponAccrualSetting (
2,
"Act/360",
false,
"Act/360",
false,
strCurrency,
false,
CompositePeriodBuilder.ACCRUAL_COMPOUNDING_RULE_GEOMETRIC
);
CashSettleParams csp = new CashSettleParams (
0,
strCurrency,
0
);
for (int i = 0; i < astrMaturityTenor.length; ++i) {
java.lang.String strFixedTenor = Helper.LEFT_TENOR_LESSER == Helper.TenorCompare (
astrMaturityTenor[i],
"6M"
) ? astrMaturityTenor[i] : "6M";
java.lang.String strFloatingTenor = "ON";
ComposableFloatingUnitSetting cfusFloating = new ComposableFloatingUnitSetting (
"ON",
CompositePeriodBuilder.EDGE_DATE_SEQUENCE_OVERNIGHT,
null,
OvernightLabel.Create (
strCurrency
),
CompositePeriodBuilder.REFERENCE_PERIOD_IN_ADVANCE,
0.
);
ComposableFixedUnitSetting cfusFixed = new ComposableFixedUnitSetting (
strFixedTenor,
CompositePeriodBuilder.EDGE_DATE_SEQUENCE_REGULAR,
null,
adblCoupon[i],
0.,
strCurrency
);
CompositePeriodSetting cpsFloating = new CompositePeriodSetting (
360,
strFloatingTenor,
strCurrency,
null,
-1.,
null,
null,
null,
null
);
CompositePeriodSetting cpsFixed = new CompositePeriodSetting (
2,
strFixedTenor,
strCurrency,
null,
1.,
null,
null,
null,
null
);
List<Integer> lsFixedStreamEdgeDate = CompositePeriodBuilder.RegularEdgeDates (
dtEffective,
strFixedTenor,
astrMaturityTenor[i],
null
);
List<Integer> lsFloatingStreamEdgeDate = CompositePeriodBuilder.OvernightEdgeDates (
dtEffective,
dtEffective.addTenor (astrMaturityTenor[i]),
null
);
Stream floatingStream = new Stream (
CompositePeriodBuilder.FloatingCompositeUnit (
lsFloatingStreamEdgeDate,
cpsFloating,
cfusFloating
)
);
Stream fixedStream = new Stream (
CompositePeriodBuilder.FixedCompositeUnit (
lsFixedStreamEdgeDate,
cpsFixed,
ucasFixed,
cfusFixed
)
);
FixFloatComponent ois = new FixFloatComponent (
fixedStream,
floatingStream,
csp
);
ois.setPrimaryCode ("OIS." + astrMaturityTenor[i] + "." + strCurrency);
aOIS[i] = ois;
}
return aOIS;
}
/*
* Construct the Array of Overnight Index Future Instruments from the given set of parameters
*
* USE WITH CARE: This sample ignores errors and does not handle exceptions.
*/
private static final FixFloatComponent[] OvernightIndexFutureFromMaturityTenor (
final JulianDate dtSpot,
final String[] astrStartTenor,
final String[] astrMaturityTenor,
final double[] adblCoupon,
final String strCurrency)
throws Exception
{
FixFloatComponent[] aOIS = new FixFloatComponent[astrStartTenor.length];
CashSettleParams csp = new CashSettleParams (
0,
strCurrency,
0
);
for (int i = 0; i < astrStartTenor.length; ++i) {
JulianDate dtEffective = dtSpot.addTenor (astrStartTenor[i]);
java.lang.String strFixedTenor = Helper.LEFT_TENOR_LESSER == Helper.TenorCompare (
astrMaturityTenor[i],
"6M"
) ? astrMaturityTenor[i] : "6M";
java.lang.String strFloatingTenor = Helper.LEFT_TENOR_LESSER == Helper.TenorCompare (
astrMaturityTenor[i],
"3M"
) ? astrMaturityTenor[i] : "3M";
ComposableFixedUnitSetting cfusFixed = new ComposableFixedUnitSetting (
strFixedTenor,
CompositePeriodBuilder.EDGE_DATE_SEQUENCE_REGULAR,
null,
adblCoupon[i],
0.,
strCurrency
);
UnitCouponAccrualSetting ucasFixed = new UnitCouponAccrualSetting (
2,
"Act/360",
false,
"Act/360",
false,
strCurrency,
false,
CompositePeriodBuilder.ACCRUAL_COMPOUNDING_RULE_GEOMETRIC
);
ComposableFloatingUnitSetting cfusFloating = new ComposableFloatingUnitSetting (
"ON",
CompositePeriodBuilder.EDGE_DATE_SEQUENCE_OVERNIGHT,
null,
OvernightLabel.Create (
strCurrency
),
CompositePeriodBuilder.REFERENCE_PERIOD_IN_ADVANCE,
0.
);
CompositePeriodSetting cpsFloating = new CompositePeriodSetting (
4,
strFloatingTenor,
strCurrency,
null,
-1.,
null,
null,
null,
null
);
CompositePeriodSetting cpsFixed = new CompositePeriodSetting (
2,
strFixedTenor,
strCurrency,
null,
1.,
null,
null,
null,
null
);
List<Integer> lsFixedStreamEdgeDate = CompositePeriodBuilder.RegularEdgeDates (
dtEffective,
"6M",
astrMaturityTenor[i],
null
);
List<Integer> lsFloatingStreamEdgeDate = CompositePeriodBuilder.RegularEdgeDates (
dtEffective,
"3M",
astrMaturityTenor[i],
null
);
Stream floatingStream = new Stream (
CompositePeriodBuilder.FloatingCompositeUnit (
lsFloatingStreamEdgeDate,
cpsFloating,
cfusFloating
)
);
Stream fixedStream = new Stream (
CompositePeriodBuilder.FixedCompositeUnit (
lsFixedStreamEdgeDate,
cpsFixed,
ucasFixed,
cfusFixed
)
);
FixFloatComponent ois = new FixFloatComponent (
fixedStream,
floatingStream,
csp
);
ois.setPrimaryCode ("OIS." + astrMaturityTenor[i] + "." + strCurrency);
aOIS[i] = ois;
}
return aOIS;
}
/*
* Construct the Array of Overnight Fund Future Instruments from the given set of parameters
*
* USE WITH CARE: This sample ignores errors and does not handle exceptions.
*/
private static final FixFloatComponent[] OvernightFundFutureFromMaturityTenor (
final JulianDate dtSpot,
final String[] astrStartTenor,
final String[] astrMaturityTenor,
final double[] adblCoupon,
final String strCurrency)
throws Exception
{
FixFloatComponent[] aOIS = new FixFloatComponent[astrStartTenor.length];
CashSettleParams csp = new CashSettleParams (
0,
strCurrency,
0
);
for (int i = 0; i < astrStartTenor.length; ++i) {
JulianDate dtEffective = dtSpot.addTenor (astrStartTenor[i]);
java.lang.String strFixedTenor = Helper.LEFT_TENOR_LESSER == Helper.TenorCompare (
astrMaturityTenor[i],
"6M"
) ? astrMaturityTenor[i] : "6M";
ComposableFixedUnitSetting cfusFixed = new ComposableFixedUnitSetting (
strFixedTenor,
CompositePeriodBuilder.EDGE_DATE_SEQUENCE_REGULAR,
null,
adblCoupon[i],
0.,
strCurrency
);
UnitCouponAccrualSetting ucasFixed = new UnitCouponAccrualSetting (
2,
"Act/360",
false,
"Act/360",
false,
strCurrency,
false,
CompositePeriodBuilder.ACCRUAL_COMPOUNDING_RULE_GEOMETRIC
);
ComposableFloatingUnitSetting cfusFloating = new ComposableFloatingUnitSetting (
"ON",
CompositePeriodBuilder.EDGE_DATE_SEQUENCE_OVERNIGHT,
null,
OvernightLabel.Create (
strCurrency
),
CompositePeriodBuilder.REFERENCE_PERIOD_IN_ADVANCE,
0.
);
CompositePeriodSetting cpsFloating = new CompositePeriodSetting (
4,
"ON",
strCurrency,
null,
-1.,
null,
null,
null,
null
);
CompositePeriodSetting cpsFixed = new CompositePeriodSetting (
2,
strFixedTenor,
strCurrency,
null,
1.,
null,
null,
null,
null
);
List<Integer> lsFixedStreamEdgeDate = CompositePeriodBuilder.RegularEdgeDates (
dtEffective,
"6M",
astrMaturityTenor[i],
null
);
List<Integer> lsFloatingStreamEdgeDate = CompositePeriodBuilder.RegularEdgeDates (
dtEffective,
"3M",
astrMaturityTenor[i],
null
);
Stream floatingStream = new Stream (
CompositePeriodBuilder.FloatingCompositeUnit (
lsFloatingStreamEdgeDate,
cpsFloating,
cfusFloating
)
);
Stream fixedStream = new Stream (
CompositePeriodBuilder.FixedCompositeUnit (
lsFixedStreamEdgeDate,
cpsFixed,
ucasFixed,
cfusFixed
)
);
FixFloatComponent ois = new FixFloatComponent (
fixedStream,
floatingStream,
csp
);
ois.setPrimaryCode ("OIS." + astrMaturityTenor[i] + "." + strCurrency);
aOIS[i] = ois;
}
return aOIS;
}
private static final MergedDiscountForwardCurve CustomOISCurveBuilderSample (
final JulianDate dtToday,
final String strHeaderComment,
final String strCurrency,
final boolean bOvernightIndex)
throws Exception
{
System.out.println ("\n\t----------------------------------------------------------------");
System.out.println ("\t " + strHeaderComment);
System.out.println ("\t----------------------------------------------------------------");
/*
* Construct the Array of Deposit Instruments and their Quotes from the given set of parameters
*/
SingleStreamComponent[] aDepositComp = DepositInstrumentsFromMaturityDays (
dtToday,
strCurrency,
new int[] {
1, 2, 3
}
);
double[] adblDepositQuote = new double[] {
0.0004, 0.0004, 0.0004 // Deposit
};
/*
* Construct the Deposit Instrument Set Stretch Builder
*/
LatentStateStretchSpec depositStretch = LatentStateStretchBuilder.ForwardFundingStretchSpec (
" DEPOSIT ",
aDepositComp,
"ForwardRate",
adblDepositQuote
);
/*
* Construct the Array of Short End OIS Instruments and their Quotes from the given set of parameters
*/
double[] adblShortEndOISQuote = new double[] {
0.00070, // 1W
0.00069, // 2W
0.00078, // 3W
0.00074 // 1M
};
CalibratableComponent[] aShortEndOISComp = bOvernightIndex ?
OvernightIndexFromMaturityTenor (
dtToday,
new java.lang.String[]
{"1W", "2W", "3W", "1M"},
adblShortEndOISQuote,
strCurrency) :
OvernightFundFromMaturityTenor (
dtToday,
new java.lang.String[]
{"1W", "2W", "3W", "1M"},
adblShortEndOISQuote,
strCurrency
);
/*
* Construct the Short End OIS Instrument Set Stretch Builder
*/
LatentStateStretchSpec oisShortEndStretch = LatentStateStretchBuilder.ForwardFundingStretchSpec (
"SHORT END OIS",
aShortEndOISComp,
"SwapRate",
adblShortEndOISQuote
);
/*
* Construct the Array of OIS Futures Instruments and their Quotes from the given set of parameters
*/
double[] adblOISFutureQuote = new double[] {
0.00046, // 1M x 1M
0.00016, // 2M x 1M
-0.00007, // 3M x 1M
-0.00013, // 4M x 1M
-0.00014 // 5M x 1M
};
CalibratableComponent[] aOISFutureComp = bOvernightIndex ?
OvernightIndexFutureFromMaturityTenor (
dtToday,
new java.lang.String[] {"1M", "2M", "3M", "4M", "5M"},
new java.lang.String[] {"1M", "1M", "1M", "1M", "1M"},
adblOISFutureQuote,
strCurrency
) :
OvernightFundFutureFromMaturityTenor (
dtToday,
new java.lang.String[] {"1M", "2M", "3M", "4M", "5M"},
new java.lang.String[] {"1M", "1M", "1M", "1M", "1M"},
adblOISFutureQuote,
strCurrency
);
/*
* Construct the OIS Future Instrument Set Stretch Builder
*/
LatentStateStretchSpec oisFutureStretch = LatentStateStretchBuilder.ForwardFundingStretchSpec (
" OIS FUTURE ",
aOISFutureComp,
"SwapRate",
adblOISFutureQuote
);
/*
* Construct the Array of Long End OIS Instruments and their Quotes from the given set of parameters
*/
double[] adblLongEndOISQuote = new double[] {
0.00002, // 15M
0.00008, // 18M
0.00021, // 21M
0.00036, // 2Y
0.00127, // 3Y
0.00274, // 4Y
0.00456, // 5Y
0.00647, // 6Y
0.00827, // 7Y
0.00996, // 8Y
0.01147, // 9Y
0.01280, // 10Y
0.01404, // 11Y
0.01516, // 12Y
0.01764, // 15Y
0.01939, // 20Y
0.02003, // 25Y
0.02038 // 30Y
};
CalibratableComponent[] aLongEndOISComp = bOvernightIndex ?
OvernightIndexFromMaturityTenor (
dtToday,
new java.lang.String[]
{"15M", "18M", "21M", "2Y", "3Y", "4Y", "5Y", "6Y", "7Y", "8Y", "9Y", "10Y", "11Y", "12Y", "15Y", "20Y", "25Y", "30Y"},
adblLongEndOISQuote,
strCurrency
) : OvernightFundFromMaturityTenor (
dtToday,
new java.lang.String[]
{"15M", "18M", "21M", "2Y", "3Y", "4Y", "5Y", "6Y", "7Y", "8Y", "9Y", "10Y", "11Y", "12Y", "15Y", "20Y", "25Y", "30Y"},
adblLongEndOISQuote,
strCurrency
);
/*
* Construct the Long End OIS Instrument Set Stretch Builder
*/
LatentStateStretchSpec oisLongEndStretch = LatentStateStretchBuilder.ForwardFundingStretchSpec (
"LONG END OIS ",
aLongEndOISComp,
"SwapRate",
adblLongEndOISQuote
);
LatentStateStretchSpec[] aStretchSpec = new LatentStateStretchSpec[] {
depositStretch,
oisShortEndStretch,
oisFutureStretch,
oisLongEndStretch
};
/*
* Set up the Linear Curve Calibrator using the following parameters:
* - Cubic Exponential Mixture Basis Spline Set
* - Ck = 2, Segment Curvature Penalty = 2
* - Quadratic Rational Shape Controller
* - Natural Boundary Setting
*/
LinearLatentStateCalibrator lcc = new LinearLatentStateCalibrator (
new SegmentCustomBuilderControl (
MultiSegmentSequenceBuilder.BASIS_SPLINE_POLYNOMIAL,
new PolynomialFunctionSetParams (4),
SegmentInelasticDesignControl.Create (
2,
2
),
new ResponseScalingShapeControl (
true,
new QuadraticRationalShapeControl (0.)
),
null
),
BoundarySettings.NaturalStandard(),
MultiSegmentSequence.CALIBRATE,
null,
null
);
/*
* Construct the Shape Preserving Discount Curve by applying the linear curve calibrator to the array
* of Deposit and Swap Stretches.
*/
MergedDiscountForwardCurve dc = ScenarioDiscountCurveBuilder.ShapePreservingDFBuild (
strCurrency,
lcc,
aStretchSpec,
new ValuationParams (
dtToday,
dtToday,
strCurrency
),
null,
null,
null,
1.
);
/*
* Cross-Comparison of the Deposit Calibration Instrument "Rate" metric across the different curve
* construction methodologies.
*/
System.out.println ("\t----------------------------------------------------------------");
System.out.println ("\t DEPOSIT INSTRUMENTS CALIBRATION RECOVERY");
System.out.println ("\t----------------------------------------------------------------");
for (int i = 0; i < aDepositComp.length; ++i)
System.out.println ("\t[" + aDepositComp[i].effectiveDate() + " => " + aDepositComp[i].maturityDate() + "] = " +
FormatUtil.FormatDouble (aDepositComp[i].measureValue (new ValuationParams (dtToday, dtToday, strCurrency), null,
MarketParamsBuilder.Create (dc, null, null, null, null, null, null),
null, "Rate"), 1, 6, 1.) + " | " + FormatUtil.FormatDouble (adblDepositQuote[i], 1, 6, 1.));
/*
* Cross-Comparison of the Short End OIS Calibration Instrument "Rate" metric across the different curve
* construction methodologies.
*/
System.out.println ("\n\t----------------------------------------------------------------");
System.out.println ("\t OIS SHORT END INSTRUMENTS CALIBRATION RECOVERY");
System.out.println ("\t----------------------------------------------------------------");
for (int i = 0; i < aShortEndOISComp.length; ++i)
System.out.println ("\t[" + aShortEndOISComp[i].effectiveDate() + " => " + aShortEndOISComp[i].maturityDate() + "] = " +
FormatUtil.FormatDouble (aShortEndOISComp[i].measureValue (new ValuationParams (dtToday, dtToday, strCurrency), null,
MarketParamsBuilder.Create (dc, null, null, null, null, null, null),
null, "CalibSwapRate"), 1, 6, 1.) + " | " + FormatUtil.FormatDouble (adblShortEndOISQuote[i], 1, 6, 1.) + " | " +
FormatUtil.FormatDouble (aShortEndOISComp[i].measureValue (new ValuationParams (dtToday, dtToday, strCurrency), null,
MarketParamsBuilder.Create (dc, null, null, null, null, null, null),
null, "FairPremium"), 1, 6, 1.));
/*
* Cross-Comparison of the OIS Future Calibration Instrument "Rate" metric across the different curve
* construction methodologies.
*/
System.out.println ("\n\t----------------------------------------------------------------");
System.out.println ("\t OIS FUTURE INSTRUMENTS CALIBRATION RECOVERY");
System.out.println ("\t----------------------------------------------------------------");
for (int i = 0; i < aOISFutureComp.length; ++i)
System.out.println ("\t[" + aOISFutureComp[i].effectiveDate() + " => " + aOISFutureComp[i].maturityDate() + "] = " +
FormatUtil.FormatDouble (aOISFutureComp[i].measureValue (new ValuationParams (dtToday, dtToday, strCurrency), null,
MarketParamsBuilder.Create (dc, null, null, null, null, null, null),
null, "SwapRate"), 1, 6, 1.) + " | " + FormatUtil.FormatDouble (adblOISFutureQuote[i], 1, 6, 1.) + " | " +
FormatUtil.FormatDouble (aOISFutureComp[i].measureValue (new ValuationParams (dtToday, dtToday, strCurrency), null,
MarketParamsBuilder.Create (dc, null, null, null, null, null, null),
null, "FairPremium"), 1, 6, 1.));
/*
* Cross-Comparison of the Long End OIS Calibration Instrument "Rate" metric across the different curve
* construction methodologies.
*/
System.out.println ("\n\t----------------------------------------------------------------");
System.out.println ("\t OIS LONG END INSTRUMENTS CALIBRATION RECOVERY");
System.out.println ("\t----------------------------------------------------------------");
for (int i = 0; i < aLongEndOISComp.length; ++i)
System.out.println ("\t[" + aLongEndOISComp[i].effectiveDate() + " => " + aLongEndOISComp[i].maturityDate() + "] = " +
FormatUtil.FormatDouble (aLongEndOISComp[i].measureValue (new ValuationParams (dtToday, dtToday, strCurrency), null,
MarketParamsBuilder.Create (dc, null, null, null, null, null, null),
null, "CalibSwapRate"), 1, 6, 1.) + " | " + FormatUtil.FormatDouble (adblLongEndOISQuote[i], 1, 6, 1.) + " | " +
FormatUtil.FormatDouble (aLongEndOISComp[i].measureValue (new ValuationParams (dtToday, dtToday, strCurrency), null,
MarketParamsBuilder.Create (dc, null, null, null, null, null, null),
null, "FairPremium"), 1, 6, 1.));
return dc;
}
public static final void main (
final String[] astrArgs)
throws Exception
{
/*
* Initialize the Credit Analytics Library
*/
EnvManager.InitEnv ("");
String strCurrency = "EUR";
JulianDate dtToday = DateUtil.CreateFromYMD (
2018,
DateUtil.FEBRUARY,
18
);
MergedDiscountForwardCurve dcIndex = CustomOISCurveBuilderSample (
dtToday,
"---- DISCOUNT CURVE WITH OVERNIGHT INDEX ---",
strCurrency,
true
);
MergedDiscountForwardCurve dcFund = CustomOISCurveBuilderSample (
dtToday,
"---- DISCOUNT CURVE WITH OVERNIGHT FUND ---",
strCurrency,
false
);
JulianDate dtCustomOISStart = dtToday.subtractTenor ("2M");
UnitCouponAccrualSetting ucasCustomFixed = new UnitCouponAccrualSetting (
2,
"Act/360",
false,
"Act/360",
false,
strCurrency,
true,
CompositePeriodBuilder.ACCRUAL_COMPOUNDING_RULE_GEOMETRIC
);
ComposableFloatingUnitSetting cfusCustomFloating = new ComposableFloatingUnitSetting (
"ON",
CompositePeriodBuilder.EDGE_DATE_SEQUENCE_OVERNIGHT,
null,
OvernightLabel.Create (
strCurrency
),
CompositePeriodBuilder.REFERENCE_PERIOD_IN_ADVANCE,
0.
);
ComposableFixedUnitSetting cfusCustomFixed = new ComposableFixedUnitSetting (
"6M",
CompositePeriodBuilder.EDGE_DATE_SEQUENCE_REGULAR,
null,
0.003,
0.,
strCurrency
);
CompositePeriodSetting cpsCustomFloating = new CompositePeriodSetting (
4,
"3M",
strCurrency,
null,
-1.,
null,
null,
null,
null
);
CompositePeriodSetting cpsCustomFixed = new CompositePeriodSetting (
2,
"6M",
strCurrency,
null,
1.,
null,
null,
null,
null
);
List<Integer> lsCustomFixedStreamEdgeDate = CompositePeriodBuilder.RegularEdgeDates (
dtCustomOISStart,
"6M",
"4M",
null
);
List<Integer> lsCustomFloatingStreamEdgeDate = CompositePeriodBuilder.RegularEdgeDates (
dtCustomOISStart,
"3M",
"4M",
null
);
Stream customFloatingStream = new Stream (
CompositePeriodBuilder.FloatingCompositeUnit (
lsCustomFloatingStreamEdgeDate,
cpsCustomFloating,
cfusCustomFloating
)
);
Stream customFixedStream = new Stream (
CompositePeriodBuilder.FixedCompositeUnit (
lsCustomFixedStreamEdgeDate,
cpsCustomFixed,
ucasCustomFixed,
cfusCustomFixed
)
);
FixFloatComponent ois = new FixFloatComponent (
customFixedStream,
customFloatingStream,
new CashSettleParams (
0,
strCurrency,
0
)
);
CurveSurfaceQuoteContainer mktParamsIndex = MarketParamsBuilder.Create (
dcIndex,
null,
null,
null,
null,
null,
null
);
CurveSurfaceQuoteContainer mktParamsFund = MarketParamsBuilder.Create (
dcFund,
null,
null,
null,
null,
null,
null
);
System.out.println ("\n\t----------------------------------------------------------------");
System.out.println ("\t----------------------------------------------------------------\n");
Map<String, Double> mapOISOutputIndex = ois.value (
new ValuationParams (
dtToday,
dtToday,
strCurrency
),
null,
mktParamsIndex,
null
);
Map<String, Double> mapOISOutputFund = ois.value (
new ValuationParams (
dtToday,
dtToday,
strCurrency
),
null,
mktParamsFund,
null
);
for (Map.Entry<String, Double> me : mapOISOutputIndex.entrySet()) {
String strKey = me.getKey();
double dblIndexMeasure = me.getValue();
double dblFundMeasure = mapOISOutputFund.get (strKey);
String strReconcile = NumberUtil.WithinTolerance (
dblIndexMeasure,
dblFundMeasure,
1.e-08,
1.e-04) ?
"RECONCILES" :
"DOES NOT RECONCILE";
System.out.println ("\t" +
FormatUtil.FormatDouble (dblIndexMeasure, 1, 8, 1.) + " | " +
FormatUtil.FormatDouble (dblFundMeasure, 1, 8, 1.) + " | " +
strReconcile + " <= " + strKey
);
}
}
}