shortSwapIndexBase in SwaptionVolCube2 (AUD as example)

Posted by Yan Kuang on
URL: http://quantlib.414.s1.nabble.com/reference-of-boost-shared-ptr-instead-of-Handle-tp7623p7633.html


Hi All,

In the constructor of SwaptionVolCube2, there are two swap index:

            const boost::shared_ptr<SwapIndex>& swapIndexBase,
            const boost::shared_ptr<SwapIndex>& shortSwapIndexBase,

I can't understand why we need two swap indices.  I can only guess different swap tenor may require
different index. However one can always fix the issue in the index definition. For example I defined
aud BBSW swap index as: (if swap tenor longer thant 3 years, 6 months tenor for fixed an floating side.)

namespace QuantLib {

AudBbswSwapAfma::AudBbswSwapAfma(const Period& tenor,
                                        const Handle<YieldTermStructure>& h)
    : SwapIndex("AudBbswSwapAfma", // familyName
                tenor,
                1, // settlementDays
                AUDCurrency(),
                Australia(),
                tenor > 3*Years ? 6*Months : 3*Months, // fixedLegTenor
                ModifiedFollowing, // fixedLegConvention
                Actual365Fixed(), // fixedLegDaycounter
                boost::shared_ptr<IborIndex>
                                (new AudBbsw(tenor > 3*Years ? 6*Months : 3*Months, h))) {}
}

To make my SwaptionVolCube2 usage code compiled, I did the following (4 year for longer, 3 years for shorter :))

 swapIndexBase = boost::shared_ptr<SwapIndex>(new
                AudBbswSwapAfma(4*Years, termStructure));
       
    shortSwapIndexBase = boost::shared_ptr<SwapIndex>(new
                AudBbswSwapAfma(3*Years, termStructure));

boost::shared_ptr<SwaptionVolCube2> pSwopVolCube(new SwaptionVolCube2(atmVolMatrix,
                             tenors.options,
                             tenors.swaps,
                             strikeSpreads,
                             volSpreadsHandle,
                             swapIndexBase,
                             shortSwapIndexBase,
                             vegaWeighedSmileFit));

Please tell me if I missunderstood the issue. Help will be greatly appreciated, as I am trying to achieve
the target using quantlib under time pressure.

Many thanks,
Yan

 

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