{
  "abstract": "We study robust bond valuation with endogenous short-rate feedback under volatility uncertainty. Within the $G$-expectation framework, the dependence of the short rate on the bond price yields a nonlinear fixed-point problem, represented by a quadratic $G$-BSDE for the logarithmic price. Under suitable assumptions, we establish existence, uniqueness, comparison, and stability for bounded finite-horizon solutions. An additional strict monotonicity condition yields a unique bounded infinite-horizon solution and exponential convergence of finite-horizon approximations on compact time intervals. We apply these results to inverse short-rate design, constructing discount-rate coefficients that reproduce admissible smooth bond-price targets at a fixed maturity. For long maturities, we construct feedback rules under which the compensated logarithmic price converges exponentially to a prescribed bounded state-dependent profile, while the asymptotic yield equals a specified target.",
  "abstract_shown": true,
  "affiliations": [],
  "article_type": null,
  "arxiv": "2609.19094",
  "author_total": 2,
  "authors": [
    {
      "name": "Jaehyun Kim"
    },
    {
      "name": "Hyungbin Park"
    }
  ],
  "bibtex": "https://research.draconitic.com/paper/2qq9k6trc21nq.bib",
  "cited_by": 0,
  "doi": "10.48550/arxiv.2609.19094",
  "fulltext_url": null,
  "id": "2qq9k6trc21nq",
  "issns": [],
  "landing_url": "https://arxiv.org/abs/2609.19094",
  "language": null,
  "licence": "LicenseRef-arXiv-nonexclusive-1.0",
  "licence_label": "arXiv licence",
  "licence_source": "article",
  "licence_url": "http://arxiv.org/licenses/nonexclusive-distrib/1.0/",
  "metadata_licence": "CC0-1.0",
  "native_subjects": [
    [
      "arxiv",
      "math.PR"
    ],
    [
      "arxiv",
      "q-fin.MF"
    ],
    [
      "openalex",
      "2003|Stochastic processes and financial applications"
    ]
  ],
  "openalex": "W7213493508",
  "pdf_url": "https://arxiv.org/pdf/2609.19094",
  "pmcid": null,
  "pmid": null,
  "published": "2026-09-16",
  "publisher": null,
  "ris": "https://research.draconitic.com/paper/2qq9k6trc21nq.ris",
  "sources": [
    {
      "first_seen": "2026-10-30T12:22:04Z",
      "native_id": "2609.19094",
      "source": "arxiv",
      "url": "https://arxiv.org/abs/2609.19094"
    }
  ],
  "subjects": [
    {
      "field": "mathematics",
      "origin": "arxiv:math.PR",
      "subfield": "probability"
    }
  ],
  "title": "Quadratic G-BSDEs for bond pricing with endogenous short-rate feedback",
  "title_text": "Quadratic G-BSDEs for bond pricing with endogenous short-rate feedback",
  "type": "preprint",
  "updated_at": "2026-10-30T12:22:04Z",
  "url": "https://research.draconitic.com/paper/2qq9k6trc21nq",
  "venue": "arXiv",
  "versions": []
}