TY - JOUR T1 - Can Non-Negative Interest Rates Grow on Recombining Trees? A New Approach JF - The Journal of Fixed Income SP - 76 LP - 79 DO - 10.3905/jfi.1999.319262 VL - 9 IS - 2 AU - Hubert Shen Y1 - 1999/09/30 UR - https://pm-research.com/content/9/2/76.abstract N2 - The author derives a new class of binomial interest rate models that are recombining, yet exhibit non–negative rates, a volatility smile, and mean reversion. The approach may also be used to generalize more conventional binomial tree models to incorporate sure features, if desired. Matching to the initial term structure of interest rates remains under investigation. ER -