Chan–Karolyi–Longstaff–Sanders process

The Chan–Karolyi–Longstaff–Sanders (CKLS) process is a popular class of affine term structure models used in finance to describe the evolution of interest rates. Specifically, it provides a framework for modeling the dynamics of interest rates over time, capturing their stochastic nature and allowing for the consideration of multiple factors that can affect rate movements. The CKLS model is characterized by a specific formulation of the stochastic differential equations governing the behavior of interest rates.