Journal of Asset Management

TABLE 9

FROM:

Global term structure modelling using principal component analysis

Arcady Novosyolov and Daniel Satchkov

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Table 9. Differences in R2 of regressing term structure points on 20 PCs resulting from the Procedure 3 vs. 20 global PCs resulting from Procedure 2

  Government Curves (except Swiss) LIBOR
  US Swiss LIBOR UK Japan Canada US Euro UK Japan Canada
  30.110.010.060- 0.03- 0.06- 0.040.02- 0.03- 0.03
  60.130.010.0500.050- 0.040.04- 0.020.02
 120.03- 0.010.02- 0.040.030.02- 0.020- 0.040.02
 240.010.030.02- 0.04000.010.07- 0.010.02
 3600.020.02- 0.01000.010.06- 0.010.02
 480.010.020.01- 0.02000.010.0100.01
 6000.010.01- 0.010000- 0.010.01
 720.010.010.01- 0.020000.01- 0.010.01
 840.0100- 0.020000.01- 0.010.01
 96000- 0.0200.0100.01- 0.010
108000- 0.0100.0100- 0.010.01
120000- 0.020.0200.01000
1800.020.010- 0.050.10.0100- 0.010
2400.030.010.03- 0.060.120.0100.01- 0.010
3000.010.010.05- 0.090.060.0100.01- 0.020
3600.010.010.06- 0.0900.010.010.02- 0.030
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