Markov decision process algorithms for wealth allocation problems with defaultable bonds

This paper is concerned with analysing optimal wealth allocation techniques within a defaultable financial market similar to Bielecki and Jang (2007). It studies a portfolio optimization problem combining a continuous-time jump market and a defaultable security; and presents numerical solutions thro...

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Bibliographic Details
Main Authors: Pérez López, Iker, Hodge, David, Le, Huiling
Format: Article
Language:English
Published: Applied Probability Trust 2016
Subjects:
Online Access:https://eprints.nottingham.ac.uk/31020/