Regarding copula
One of my banker friends asked me "A thinking is going on about replacing value at risk with copula. What do you think?"
Reply: Some firms are searching a better formula than VaR like copula - but that is more technical and difficult to understand for non-quant bankers, hence BIS or RBI has not come out with any such guideline to the best of my knowledge, copula is used by few academicians in derivative analysis like commodity futures and CDO (collatalized debt obligations)- but it is yet to be accepted by regulators. I am open to knowledge. Please check my comments from other sources.
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