# Hull-White Model

*Quant & Pricing — Finicade finance glossary*

The Hull-White model extends Vasicek with a time-dependent drift chosen so the model reproduces today's observed yield curve exactly. That single change is what made it a production model: a rates model that mispriced the current curve would arbitrage itself on day one. It's usually implemented on a trinomial tree, which handles the early-exercise features common in callable bonds and Bermudan swaptions.

**Also known as:** Hull White, extended Vasicek

**Related terms:** [Vasicek Model](https://finicade.com/glossary/vasicek-model), [Yield Curve](https://finicade.com/glossary/yield-curve), [Swaption](https://finicade.com/glossary/swaption), [Trinomial Tree](https://finicade.com/glossary/trinomial-tree), [Model Calibration](https://finicade.com/glossary/model-calibration)

**Taught in:** Quant Quest — Interest Rate Term Structure

Source: https://finicade.com/glossary/hull-white-model