New interest rate models could lead to negative forward rates.
Interest rate models describe how interest rates change over time using mathematical formulas. Some models assume all rates move together, while others focus on the current rate to predict future rates. The Hull-White model is a more precise version of the Vasicek model. Some models can predict negative rates under certain conditions. By adjusting the models, they can be used to make accurate predictions without the possibility of free money-making opportunities.