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LLM-Generated Counterfactual Stress Scenarios for Portfolio Risk Simulation via Hybrid Prompt-RAG Pipeline

Soleimani, Masoud
arXiv (All) · Papers
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artificial-intelligenceeconometricsrisk-management
We develop a transparent, auditable large language model (LLM) pipeline for macro-financial stress testing. Structured prompting, with optional retrieval of country fundamentals and news, emits G7 macroeconomic scenarios (GDP growth, inflation, policy rate), which are converted into deviations from
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