Research On Risk Measurement Of Internet Financial Fixed Income Products

In recent years,internet finance has been developing rapidly.Because of the economic fluctuation,internet financial fixed income products become increasingly popular.The form of internet finance is divided into four types: third party payment;non-bank network investment and financing methods;electronic and networking of the traditional business and internet financial portal.In theory,all of the traditional fixed income products are likely to be available through the internet financial portal or innovative internet platform.Therefore,the type of internet financial fixed income products should include all traditional fixed income products.In the existing internet financial fixed income products,the balance of treasure is a more mature representative.Balance treasure as an example,there are five types of internet financial fixed income products: credit risk,market risk,liquidity risk,operational risk,legal and policy risk.Internet financial model also makes its risk is different from the characteristics of the traditional financial model.Rapid transmission of information on the Internet platform to accelerate the proliferation of risk.The highly interactive nature of the Internet increases the likelihood of risk transfer.So,the internet finance has also exacerbated the systemic risk,and the Risk Spillover effect increased.At present,for the Internet financial risk measurement model,scholars did not reach a consensus.In order to adapt to the characteristics of the internet financial fixed income products,asymmetry and long memorability,this paper uses the models of GARCH-N?GARCH-t?GARCH-GED?EGARCH-N?EGARCH-t?EGARCH-GED?TGARCH-N?TGARCH-t?TGARCH-GED to measure the VaR and CVaR of the internet financial fixed income products.And the evaluation results are analyzed.The results show that the t distribution and TGARCH model can better describe the risk of Internet Financial fixed income products.The VaR and CVaR value of Internet Financial fixed income products reflect it's moderate risk while the relatively small risk is just fixed income products' characteristics.