1.14.1.2. Gauss+ Model vs. Vasicek Model:

Vasicek Model Gauss+ Model
A one-factor model. A three-factor model (with two sources of risk).
Assumes a normal distribution for the factor. Assumes normal distributions for the factors.
Cannot capture the hump-shaped term structures of volatility. Can capture the hump-shaped term structures of volatility.
A simple but less flexible model. A model that balances the tractability

Vasicek Model	Gauss+ Model
A one-factor model.	A three-factor model (with two sources of risk).
Assumes a normal distribution for the factor.	Assumes normal distributions for the factors.
Cannot capture the hump-shaped term structures of volatility.	Can capture the hump-shaped term structures of volatility.
A simple but less flexible model.	A model that balances the tractability

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Financial Risk Manager Part 2