Counterparty risk and funding: immersion and beyond

In Crépey (Math. Finance 25:23–50, 2015), a basic reduced-form counterparty risk modelling approach was introduced under a standard immersion hypothesis between a reference filtration and the filtration progressively enlarged by the default times of the two parties. This basic setup, with a related continuity assumption on some of the data at the first default time of the two parties, is too restrictive for wrong-way and gap risk applications, such as counterparty risk on credit derivatives. This paper introduces an extension of the basic approach, implements it through marked default times and applies it to counterparty risk on credit derivatives.     

Financial exclusion in the USA: Looking beyond demographics

We investigate the linkages between cultural factors and financial exclusion using detailed data from the 2013 wave of the Panel Study of Income Dynamics (PSID). Controlling for a large number of demographic characteristics and background factors, we find that Catholics are more likely to be excluded from basic banking services. In contrast, Jewish and religiously unaffiliated individuals are more likely to participate in retirement plans and the stock market. More importantly, we obtain economically important effects of social participation on financial exclusion. In particular, we document that individuals exhibiting a pro-social religious behavior, proxied by charitable giving, are less likely to be financially excluded. This effect remains robust to the use of earlier waves of the PSID, as well as to alternative estimation techniques which account for endogeneity of charitable giving and unobserved households’ heterogeneity. Our findings highlight the need for the development of initiatives which promote social participation as a means of combating financial exclusion.     

欧元十年回眸与展望

1999年1月1日,欧洲单一货币——欧元宣告诞生成为世界货币史上一个划时代的事件。2009年新年的第一天,欧元在迎来10岁"生日"的同时,欧元区大家庭也迎来了第16个成员——斯洛伐克。一方面,尽管欧元自问世以来一直备受争议,但是经过10年的发展,欧元已经成为国际主要货币之一;另一     

Futures India: society, nation-state, civilisation

The future of a phenomenon can only be understood in terms of (a) the conceptual construction one makes of it and (b) the changes in empirical content of that phenomenon. In turn, the empirical reality ought to be discerned in terms of the past-present-future dialectic. Keeping this in view, this paper begins with conceptual clarifications of the terms society, nation-state and civilization and situates India in terms of these notions. It is suggested that India’s future as a society and as a civilisation is durable although some changes in their content are inevitable. But as a ‘nation-state’ India may radically change given the contestations about it. Four competing value-orientations—cultural monism, cultural pluralism, cultural federalism and cultural subalternism—about the contemporary Indian nation-state have been identified. India’s future as a nation-state will depend upon the legitimacy these value orientations achieve in future.     

Reframing the nation-state: Rethinking the Australian dream from the local to the global

Movement across the borders of the nation-state has always been uneven, but over the past few decades the unfettered movement of goods and images has been defended under the ideology of freedom and openness. At the same time, the movement of people, including refugees, has become increasingly administered and restricted in the name of ‘the national interest’. This article argues that Australia has been part of this development. The Australian dream was once for all to own a quarter-acre housing block, protected from the machinations of the world. Across the turn of the 20th century into the present an invidious version of this dream has intensified, shorn of its egalitarian spirit. The nation-state itself has been made over in this image. The Australian state now acts on behalf of the nation to keep unwanted strangers out, while facilitating the open globalization of the Australian economy. In this context, older ethical pronouncements about freedom, equality openness and fairness no longer work. This article develops an alternative approach based upon a layering of ethical considerations. The new Australian dream it suggests will entail a complete renegotiation of how we are to live within and across the boundaries of identity, culture and economy.     

Council Leaders in the 'New Britain': Looking Back and Looking Forward

This is an interesting time to review the attitudes and expectations of some leading figures in local government as the old age of despair is drawing to an end and a new dawn seems to be brightening the horizon. This article reports the view of half a dozen local government leaders. Early indications are that the Labour Government is serious about restoring at least some of local government's lost powers and functions. These interviews suggest that Ministers will find a ready and eager response when they do so, for example the enthusiasm with which the best value scheme has been greeted. In other areas, including tax capping and the introduction of regional government, the future is less certain but the more radical proposals being canvassed are likely to command support from senior councillors if Ministers have the nerve to proceed with them.     

Looking ahead: implications of the present

On its seventy-fifth anniversary, HBR asked five of the business world's most insightful thinkers to comment on the challenges taking shape for executives as they move into the next century. In "The Future That Has Already Happened," Peter Drucker examines the effects of the increasing underpopulation of the world's developed countries. With growing imbalances in labor resources worldwide, he writes, executives in the developed countries will need to improve the productivity of knowledge and of knowledge workers to maintain a competitive advantage. Esther Dyson's article "Mirror, Mirror on the Wall" reveals the mind shift executives will need to make in a networked world, where companies will be known for what they do rather than for what they say. Executives will have to respond openly and intelligently to feedback about their organizations. The old language of property and ownership no longer serves executives, writes Charles Handy in "The Citizen Corporation." The corporation should be thought of no longer as property but as a community, where members are regarded as citizens. Technology has given executives more information than today's machines can help them understand, explains Paul Saffo in "Are You Machine Wise?" Machine-wise executives will know when to turn their computers off and take their own counsel, he writes. Peter Senge's article "Communities of Leaders and Learners" urges executives to reject the myth of leaders as isolated heroes and instead to build a community of leaders. Sustained institutional learning, he writes, requires organizations to reintegrate their typically fragmented learning processes.     

Funding money-creating banks: Cash funding,balance sheet funding and the moral hazard of currency elasticity

Once banks are viewed as money creators rather than financial intermediaries, a distinction between their cash funding and balance sheet funding can be made. This distinction opens up various insights. It allows for a fuller explanation of the cash needs of banks with reference to the pattern of their cash gains and losses. It facilitates an understanding of the central bank as not only a cash lender of last resort (LOLR) for some banks some of the time, but also as a cash lender of continual and only resort (LOCOR) for all banks all of the time. It leads to novel insights into the sources of banks' balance sheet funding. The paper investigates the various implications of the central bank's elastic currency policy in its role as LOCOR, particularly how it thereby incites considerably more moral hazard than conventionally acknowledged. This realisation opens up a better understanding of the banking sector's proneness to excess and the economy's susceptibility to financial cycles. The paper concludes by weighing the merits of the only two policy strategies by which banking excess can be checked.     

创业板期待临门一脚

随着<首次公开发行股票并在创业板上市管理暂行办法>在2009年3月31日公布并将于2009年5月1日施行,2009年4月17日监管部门就<中国证券监督管理委员会发行审核委员会办法>和<证券发行上市保荐业务管理办法>发布修改意见,并公开征求市场意见,至此酝酿了十年的创业板市场终于有了清晰的轮廓,似乎是指日期待了.各方传出的消息和市场的普遍预期是可能在2009年8月创业板市场将正式推出.     

Bank funding modes: Securitization versus deposits

We examine a bank's choice of whether to fund the loans it originates by emitting deposits or to sell the loans to investors. With common knowledge of loan quality and laissez faire banking, we find that the choice is irrelevant. With asymmetric information but without government intervention, we find that better quality assets will be sold (securitized) and poorer quality assets will be funded with deposits. Public regulation can influence the bank's choice; subsidies can cause a bank to favor deposit funding, but mutual funds and third-party insurers may mitigate the effects of governmental subsidies.     

高铁:超越速度的追求

自7·23温州高铁动车事故发生至今已经4个月了,关于事故原因的调查报告仍未有结果。然而,一些细微的改变正在悄然发生。11月22日,铁道部开始将大站段进行拆分,大型高铁车站改由铁路局直管。大站段拆分表明铁道部     

预见未来

让我们来看看,预测分析学如何帮助企业驱动组织的未来。卡特彼勒(Caterpillar),全球著名的工程机械公司,在许多方面看起来是一个传统的公司。但是,它在预测分析学上的应用实践,显示出这套工具在不稳定的经济环境中运用得十分有效。国际会计联合会(IFAC)最近发布的一个报告中着重谈到,卡特彼勒的预测分析项目展示了管理会计如何通过运用预测分析来提供预见性的信息,从而为公司创造价值并实现差异化。     

思辨互联网金融:2020年回首与下一个20年展望

如果说互联网金融在前十几年经历了百卉千葩的高光时刻,那么2020年,用光怪陆离、分崩离析、速成速败来形容也不为过.一方面,作为极具两面性标签的行业及产物,互联网金融在21世纪前20年为人类社会与经济发展提供了一种全新的商业模式,"互联网+金融"渗透到各行各业.但另一方面,互联网金融借助了高效的互联网化工具,放大了人性的...     

Financial intermediation and the funding of biomedical innovation: A review

We review the literature on financial intermediation in the process by which new medical therapeutics are financed, developed, and delivered. We discuss the contributing factors that lead to a key finding in the literature—underinvestment in biomedical R&D—and focus on the role that banks and other intermediaries can play in financing biomedical R&D and potentially closing this funding gap. We conclude with a discussion of the role of financial intermediation in the delivery of healthcare to patients.