Filling a gap in the literature caused by the recent financial crisis this book provides a
treatment of the techniques needed to model and evaluate interest rate derivatives according to
the new paradigm for fixed income markets. Concerning this new development there presently
exist only research articles and two books one of them an edited volume both being written by
researchers working mainly in practice. The aim of this book is to concentrate primarily on the
methodological side thereby providing an overview of the state-of-the-art and also clarifying
the link between the new models and the classical literature. The book is intended to serve as
a guide for graduate students and researchers as well as practitioners interested in the
paradigm change for fixed income markets. A basic knowledge of fixed income markets and related
stochastic methodology is assumed as a prerequisite.
