In december 1996 I started a new job as a financial modelist at the Risk Management department of Cariplo Bank, Milan. My tasks as a modelist included: i) market risk evaluations and measurement; ii) study and implementation of interest rate models; iii) pricing of exotic products; iv) curve fitting and development of a model for the coupon stripping, in particular. In October 1998, I left Cariplo for Banca IMI, were I am currently head of the Financial Models group, a team of advanced modelists providing quantitative support to the bank's desks of equity, interest rate and forex options. A list of my main tasks at Banca IMI can be found here. In July 2000 I was offered the Chair in Mathematics of Finance at the University of New South Wales in Sydney (which I had to decline).
My scientific interest in Banca IMI mainly concerned
the interest rate modelling for pricing and hedging derivatives (in theory
and practice) and the pricing of the "smile"effect in implied volatility
structures. In particular, I have investigated: i) analytically tractable
asset price dynamics that lead to smiles/skews in the implied volatility
structure; ii) the calibration of several versions of the BGM model to
market data; iii) an uncertain-volatility model for pricing and hedging
(especially) in the FX market; iv) the pricing of inflation-linked derivatives;
iv) analytically tractable extensions of the LIBOR market model; v) the
pricing of hybrid products.
Some related results have been collected
in papers, most of which jointly written with my colleague Damiano
Brigo, which appeared in Quantitative Finance, Finance and Stochastics,
Risk Magazine, International Journal of Theoretical & Applied Finance.
I and Damiano have also written a book entitled "Interest rate models:
theory and practice", published by Springer Finance in July 2001 (2nd edition in 2006). Please
click
here to view
the book's cover page, table of contents and some sample sections.
In February 2008 I joined the Quantitative Financial Research team at Bloomberg, first as a consultant in Lugano, Switzerland, and then full time in the New York office. I am currently responsible for the research in interest rates and inflation models.