Moral Hazard and Capital Requirements in a Lending Model of Credit Denial

In this paper we analyze a repeated game in which an intermediary offers unsecured loans to entrepreneurs using future credit denial to induce repayment. To finance the loans, the intermediary uses a combination of equity capital and external funds. We focus on a moral hazard problem that emerges between the intermediary and the less informed external investors over a costly loan monitoring choice. The presence of informed borrowers in the lender’s portfolio turns out to act as a substitute for capital requirements. The result is that the lending strategy utilized by the intermediary minimizes the moral hazard problem but implies the intermediary’s balance sheet is fragile to exogenous risk.Moral hazard; Capital requirements; Bank regulation; Repayment incentives

Wild Mares: My Lesbian Back-to-the-Land Life by Dianna Hunter and The New Farm: Our Ten Years on the Front Lines of the Good Food Revolution by Brent Preston

Review of Dianna Hunter\u27s Wild Mares: My Lesbian Back-to-the-Land Life and Brent Preston\u27s The New Farm: Our Ten Years on the Front Lines of the Good Food Revolution

From Car Parking to Protein Adsorption: An Overview of Sequential Adsorption Processes

The adsorption or adhesion of large particles (proteins, colloids, cells, >...) at the liquid-solid interface plays an important role in many diverse applications. Despite the apparent complexity of the process, two features are particularly important: 1) the adsorption is often irreversible on experimental time scales and 2) the adsorption rate is limited by geometric blockage from previously adsorbed particles. A coarse-grained description that encompasses these two properties is provided by sequential adsorption models whose simplest example is the random sequential adsorption (RSA) process. In this article, we review the theoretical formalism and tools that allow the systematic study of kinetic and structural aspects of these sequential adsorption models. We also show how the reference RSA model may be generalized to account for a variety of experimental features including particle anisotropy, polydispersity, bulk diffusive transport, gravitational effects, surface-induced conformational and orientational change, desorption, and multilayer formation. In all cases, the significant theoretical results are presented and their accuracy (compared to computer simulation) and applicability (compared to experiment) are discussed.Comment: 51 pages, 18 Figures, to appear in a special volume entitled "Adhesion of Submicron Particles on Solid Surfaces" of Colloids and Surfaces A, guest-edited by V. Privman.to appear in a special volume entitle

Asymmetric Information and the Mode of Entry In Foreign Credit Markets

In a newly liberalized credit market, foreign banks with cost advantages are likely to be less informed than domestic banks that hold information on credit risks. These relative advantages may generate incentives for a foreign bank to negotiate acquisition of a domestic bank in order to capture information endowments. However, if it is difficult to assess the value of information held by banks, the foreign bank will face important choices about the optimal mode of entry and what acquisition price to pay. These choices have implications for the survival of domestic banks and how capital is allocated after liberalization.Foreign entry, bank competition, information

Enhanced Saturation Coverages in Adsorption-Desorption Processes

Many experimental studies of protein deposition on solid surfaces involve alternating adsorption/desorption steps. In this paper, we investigate the effect of a desorption step (separating two adsorption steps) on the kinetics, the adsorbed-layer structure, and the saturation density. Our theoretical approach involves a density expansion of the pair distribution function and an application of an interpolation formula to estimate the saturation density as a function of the density at which the desorption process commences, $\rho_1$, and the density of the depleted configuration, $\rho_2$. The theory predicts an enhancement of the saturation density compared with that of a simple, uninterrupted RSA process and a maximum in the saturation density when $\rho_2={2/3}\rho_1$. The theoretical results are in qualitative and in semi-quantitative agreement with the results of numerical simulations.Comment: 11 pages, 5 figures, Submitted to J. Chem. Phy

Merger options and risk arbitrage

Option prices embed predictive content for the outcomes of pending mergers and acquisitions. This is particularly important in merger arbitrage, where deal failure is a key risk. In this paper, I propose a dynamic asset pricing model that exploits the joint information in target stock and option prices to forecast deal outcomes. By analyzing how deal announcements affect the level and higher moments of target stock prices, the model yields better forecasts than existing methods. In addition, the model accurately predicts that merger arbitrage exhibits low volatility and a large Sharpe ratio when deals are likely to succeed

Brain metastases in osteosarcoma: incidence, clinical and neuroradiological findings and management options.

Brain metastasis is uncommon in osteosarcoma, but this may be changing with prolonged patient survival in the modern chemotherapy era. We present 5 patients with brain metastases out of 39 with lung metastasis (13%) in a total of 87 osteosarcoma patients. The clinical manifestations of brain metastases were catastrophic: massive hemorrhage in 2 and status epilepticus in 3. Metastases were single or multiple, and some were osteoblastic. Surgical intervention in 2 cases resulted in dramatic, though transient, clinical improvement. We advocate periodic neuroradiology screening in osteosarcoma patients with lung metastases, for early detection of brain involvement

Global variance term premia and intermediary risk appetite

Sellers of variance swaps earn time-varying risk premia for their exposure to realized variance, the level of variance swap rates, and the slope of the variance swap curve. To measure risk premia, we estimate a dynamic term structure model that decomposes variance swap rates into expected variances and term premia. Empirically, we document a strong global factor structure in variance term premia across the U.S., U.K., Europe, and Japan. We further show that variance term premia are negatively correlated with the risk appetite of hedge funds, broker-dealers, and mutual funds. Our results support the hypothesis that financial intermediaries are marginal investors in the variance swap market

Progress and bottlenecks in the early domestication of the perennial oilseed Silphium integrifolium, a sunflower substitute

Silflower (Silphium integrifolium Michx.) is in the early stages of domestication as a perennial version of oilseed sunflower, its close relative. Grain crops with deep perennial root systems will provide farmers with new alternatives for managing soil moisture and limiting or remediating soil erosion, fertilizer leaching, and loss of soil biota. Several cycles of selection for increased seed production potential following initial germplasm evaluation in 2002 have provided opportunities to document the botany and ecology of this relatively obscure species, to compare agronomic practices for improving its propagation and management, and to evaluate the differences between semi-domesticated and wild accessions that have accrued over this time through intentional and unintentional genetic processes. Key findings include: domestication has increased aboveground biomass at seedling and adult stages; seed yield has increased more, achieving modest improvement in harvest index. Harvest index decreases with nitrogen fertilization. Silflower acquires nitrogen and water from greater depth than typical crops. In agricultural silflower stands within its native range, we found that Puccinia silphii (rust) and Eucosma giganteana (moth) populations build up to unacceptable levels, but we also found genetic variation for traits contributing to resistance or tolerance. Breeding or management for reduced height and vegetative plasticity should be top priorities for future silflower research outside its native range.Fil: Vilela, Alejandra Elena. Museo Paleontológico Egidio Feruglio; Argentina. Consejo Nacional de Investigaciones Científicas y Técnicas; ArgentinaFil: González Paleo, Luciana. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina. Museo Paleontológico Egidio Feruglio; ArgentinaFil: Turner, Kathryn. The Land Institute; Estados UnidosFil: Peterson, Kelsey. The Land Institute; Estados UnidosFil: Ravetta, Damián Andrés. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina. Museo Paleontológico Egidio Feruglio; ArgentinaFil: Crews, Timothy E.. The Land Institute; Estados UnidosFil: Van Tassel, David. The Land Institute; Estados Unido