com.opengamma.financial.analytics.model.credit.isda.cds.StandardVanillaRR01CDSFunction.java Source code

Java tutorial

Introduction

Here is the source code for com.opengamma.financial.analytics.model.credit.isda.cds.StandardVanillaRR01CDSFunction.java

Source

/**
 * Copyright (C) 2013 - present by OpenGamma Inc. and the OpenGamma group of companies
 * 
 * Please see distribution for license.
 */
package com.opengamma.financial.analytics.model.credit.isda.cds;

import static com.opengamma.financial.analytics.model.credit.CreditInstrumentPropertyNamesAndValues.PROPERTY_SPREAD_CURVE_SHIFT;
import static com.opengamma.financial.analytics.model.credit.CreditInstrumentPropertyNamesAndValues.PROPERTY_SPREAD_CURVE_SHIFT_TYPE;
import static com.opengamma.financial.analytics.model.credit.CreditInstrumentPropertyNamesAndValues.PROPERTY_YIELD_CURVE;
import static com.opengamma.financial.analytics.model.credit.CreditInstrumentPropertyNamesAndValues.PROPERTY_YIELD_CURVE_CALCULATION_CONFIG;
import static com.opengamma.financial.analytics.model.credit.CreditInstrumentPropertyNamesAndValues.PROPERTY_YIELD_CURVE_CALCULATION_METHOD;

import java.util.Collections;
import java.util.Set;

import org.threeten.bp.ZonedDateTime;

import com.google.common.collect.Iterables;
import com.opengamma.analytics.financial.credit.bumpers.RecoveryRateBumpType;
import com.opengamma.analytics.financial.credit.creditdefaultswap.definition.vanilla.CreditDefaultSwapDefinition;
import com.opengamma.analytics.financial.credit.creditdefaultswap.pricing.vanilla.isdanew.CDSAnalytic;
import com.opengamma.analytics.financial.credit.creditdefaultswap.pricing.vanilla.isdanew.CDSRiskFactors;
import com.opengamma.analytics.financial.credit.creditdefaultswap.pricing.vanilla.isdanew.ISDACompliantCreditCurve;
import com.opengamma.analytics.financial.credit.creditdefaultswap.pricing.vanilla.isdanew.ISDACompliantYieldCurve;
import com.opengamma.engine.ComputationTarget;
import com.opengamma.engine.function.FunctionCompilationContext;
import com.opengamma.engine.function.FunctionInputs;
import com.opengamma.engine.value.ComputedValue;
import com.opengamma.engine.value.ValueProperties;
import com.opengamma.engine.value.ValuePropertyNames;
import com.opengamma.engine.value.ValueRequirement;
import com.opengamma.engine.value.ValueRequirementNames;
import com.opengamma.engine.value.ValueSpecification;
import com.opengamma.financial.OpenGammaCompilationContext;
import com.opengamma.financial.analytics.model.credit.CreditInstrumentPropertyNamesAndValues;
import com.opengamma.financial.analytics.model.credit.CreditSecurityToIdentifierVisitor;
import com.opengamma.financial.security.FinancialSecurity;

/**
 * 
 */
public class StandardVanillaRR01CDSFunction extends StandardVanillaCDSFunction {
    private static final CDSRiskFactors CALCULATOR = new CDSRiskFactors();

    public StandardVanillaRR01CDSFunction() {
        super(ValueRequirementNames.RR01);
    }

    @Override
    protected Set<ComputedValue> getComputedValue(final CreditDefaultSwapDefinition definition,
            final ISDACompliantYieldCurve yieldCurve, final ZonedDateTime[] times, final double[] marketSpreads,
            final ZonedDateTime valuationDate, final ComputationTarget target, final ValueProperties properties,
            final FunctionInputs inputs, ISDACompliantCreditCurve hazardCurve, CDSAnalytic analytic) {

        final double rr01 = getRR01(definition, yieldCurve, properties, hazardCurve, analytic);
        final ValueSpecification spec = new ValueSpecification(ValueRequirementNames.RR01, target.toSpecification(),
                properties);
        return Collections.singleton(new ComputedValue(spec, rr01));
    }

    public static double getRR01(CreditDefaultSwapDefinition definition, ISDACompliantYieldCurve yieldCurve,
            ValueProperties properties, ISDACompliantCreditCurve hazardCurve, CDSAnalytic analytic) {
        final RecoveryRateBumpType recoveryRateBumpType = RecoveryRateBumpType.valueOf(Iterables.getOnlyElement(
                properties.getValues(CreditInstrumentPropertyNamesAndValues.PROPERTY_RECOVERY_RATE_BUMP_TYPE)));
        if (recoveryRateBumpType != RecoveryRateBumpType.ADDITIVE) {
            throw new UnsupportedOperationException(
                    "Only Additive rr01 sensitivity supported currently. Got " + recoveryRateBumpType);
        }
        final Double bump = Double.valueOf(Iterables.getOnlyElement(
                properties.getValues(CreditInstrumentPropertyNamesAndValues.PROPERTY_RECOVERY_RATE_CURVE_BUMP)));
        return bump * 1e-4 * definition.getNotional()
                * CALCULATOR.recoveryRateSensitivity(analytic, yieldCurve, hazardCurve);
    }

    @Override
    public Set<ValueRequirement> getRequirements(final FunctionCompilationContext context,
            final ComputationTarget target, final ValueRequirement desiredValue) {
        final Set<ValueRequirement> requirements = super.getRequirements(context, target, desiredValue);
        if (requirements == null) {
            return null;
        }
        final ValueProperties constraints = desiredValue.getConstraints();
        final Set<String> recoveryRateBumps = constraints
                .getValues(CreditInstrumentPropertyNamesAndValues.PROPERTY_RECOVERY_RATE_CURVE_BUMP);
        if (recoveryRateBumps == null || recoveryRateBumps.size() != 1) {
            return null;
        }
        final Set<String> recoveryRateBumpTypes = constraints
                .getValues(CreditInstrumentPropertyNamesAndValues.PROPERTY_RECOVERY_RATE_BUMP_TYPE);
        if (recoveryRateBumpTypes == null || recoveryRateBumpTypes.size() != 1) {
            return null;
        }
        final Set<String> cdsPriceTypes = constraints
                .getValues(CreditInstrumentPropertyNamesAndValues.PROPERTY_CDS_PRICE_TYPE);
        if (cdsPriceTypes == null || cdsPriceTypes.size() != 1) {
            return null;
        }

        final FinancialSecurity security = (FinancialSecurity) target.getSecurity();
        final String spreadCurveName = security.accept(
                new CreditSecurityToIdentifierVisitor(OpenGammaCompilationContext.getSecuritySource(context)))
                .getUniqueId().getValue();
        //TODO shouldn't need all of the yield curve properties
        final String yieldCurveName = desiredValue.getConstraint(PROPERTY_YIELD_CURVE);
        final String yieldCurveCalculationConfig = desiredValue
                .getConstraint(PROPERTY_YIELD_CURVE_CALCULATION_CONFIG);
        final String yieldCurveCalculationMethod = desiredValue
                .getConstraint(PROPERTY_YIELD_CURVE_CALCULATION_METHOD);
        final Set<String> creditSpreadCurveShifts = constraints.getValues(PROPERTY_SPREAD_CURVE_SHIFT);
        final Set<String> creditSpreadCurveShiftTypes = constraints.getValues(PROPERTY_SPREAD_CURVE_SHIFT_TYPE);
        final ValueProperties.Builder hazardRateCurveProperties = ValueProperties.builder()
                .with(ValuePropertyNames.CURVE, spreadCurveName)
                .with(ValuePropertyNames.CURVE_CALCULATION_METHOD, "ISDA")
                .with(PROPERTY_YIELD_CURVE_CALCULATION_CONFIG, yieldCurveCalculationConfig)
                .with(PROPERTY_YIELD_CURVE_CALCULATION_METHOD, yieldCurveCalculationMethod)
                .with(PROPERTY_YIELD_CURVE, yieldCurveName);
        if (creditSpreadCurveShifts != null) {
            hazardRateCurveProperties.with(PROPERTY_SPREAD_CURVE_SHIFT, creditSpreadCurveShifts)
                    .with(PROPERTY_SPREAD_CURVE_SHIFT_TYPE, creditSpreadCurveShiftTypes);
        }
        final ValueRequirement hazardRateCurveRequirement = new ValueRequirement(
                ValueRequirementNames.HAZARD_RATE_CURVE, target.toSpecification(), hazardRateCurveProperties.get());
        requirements.add(hazardRateCurveRequirement);
        return requirements;
    }

    @Override
    protected ValueProperties.Builder getCommonResultProperties() {
        return createValueProperties()
                .withAny(CreditInstrumentPropertyNamesAndValues.PROPERTY_RECOVERY_RATE_CURVE_BUMP)
                .withAny(CreditInstrumentPropertyNamesAndValues.PROPERTY_RECOVERY_RATE_BUMP_TYPE)
                .withAny(CreditInstrumentPropertyNamesAndValues.PROPERTY_CDS_PRICE_TYPE);
    }

    @Override
    protected boolean labelResultWithCurrency() {
        return true;
    }
}