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Documentation Index

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The FAQ for MAR21.8 specifies that inflation and cross-currency bases should be considered for Vega risk factors, without an underlying residual maturity dimension. However, MAR21.93 and MAR21.94 do not specify the correlation parameter ρkl\rho_{kl} when one of the underlyings is an Inflation or Basis curve (and hence do not have an underlying maturity). In , when one of the underlying curves is an inflation or cross-currency basis curve, we use MAR21.94 with ρkl(DELTA)\rho_{kl}^{(DELTA)} equal to 0% or 40% as determined by MAR21.48 and MAR21.49.