After a detailed look at the implications of a prolonged period of historically low interest rates and a close examination of how swaptions have been trading, Andrew Davidson & Co. has introduced two new term structure models.

These models - known as the Hull White Model (HW) and the Squared Gaussian (SG), along with an enhanced version of the existing Black Karasinski (BK) model (all included in the firm's VectorsTM suite of analytical tools) - are all based on a different distribution of interest rates over time.

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