Description
The corporate bond market is one of the areas that has witnessed profound changes since the last financial crisis, prompting regulators (and industry participants) to question its resilience under stress. We are building agent-based models to better understand bond market dynamics using simulations. Simulations offer an intriguing method of capturing the second-order feedback loops that can affect prices under conditions of stress. However, understanding all the data and emergent behaviors from these complex systems remains a difficult challenge. In this paper, we begin investigating visualization and sonification techniques that might help us meet this challenge at both agent (micro) and system-wide (macro) levels, with the goal of assembling an effective mixture of visual elements. Sonification offers a novel way to enrich our visualizations with sound, setting markets to music. An experiment assessing the impact of mutual fund market share on bond market stability provides an interesting context with meaningful outcomes.
Recommended Citation
Berndt, Don; Boogers, David; Chakraborty, Saurav; and Dalvi, Ratish, "Data Visualization and Sonification for Financial Agent-Based Models" (2017). AMCIS 2017 Proceedings. 12.
https://aisel.aisnet.org/amcis2017/HumanCI/Presentations/12
Data Visualization and Sonification for Financial Agent-Based Models
The corporate bond market is one of the areas that has witnessed profound changes since the last financial crisis, prompting regulators (and industry participants) to question its resilience under stress. We are building agent-based models to better understand bond market dynamics using simulations. Simulations offer an intriguing method of capturing the second-order feedback loops that can affect prices under conditions of stress. However, understanding all the data and emergent behaviors from these complex systems remains a difficult challenge. In this paper, we begin investigating visualization and sonification techniques that might help us meet this challenge at both agent (micro) and system-wide (macro) levels, with the goal of assembling an effective mixture of visual elements. Sonification offers a novel way to enrich our visualizations with sound, setting markets to music. An experiment assessing the impact of mutual fund market share on bond market stability provides an interesting context with meaningful outcomes.