RETURNS ON PROJECT-FINANCED INVESTMENTS: EVOLUTION AND MANAGERIAL IMPLICATIONS

In the past, project finance was used primarily to fund relatively low-risk natural resource projects with highly predictable cash flows. Today project finance is used for a wide range of assets, such as satellite telecommunications systems, amusement parks, and microprocessor factories, and in developing as well as developed countries. The author explores how the evolution into riskier assets has changed expected returns on project-financed investments. Higher return variability and greater failure rates have caused project debt capacities to fall. What is notable about project-financed investments, however, is that the best returns are not very high. And because the nature of most projects limits the upside potential, a much higher fraction of project-financed investments must be successful for capital providers to earn acceptable returns on their investments.
The move into riskier assets has also led to increased emphasis on the risk management role of project finance; that is, through careful structure and design, a firm can use project finance to reduce the collateral damage caused by a failing investment and also to limit sovereign risks. But even so, the author suggests that the original structures were never designed to handle projects with significant asset risk. For this reason, in cases of riskier projects, single-asset project loans are likely to be replaced by either traditional corporate financing vehicles or hybrid structures involving elements of both project and corporate finance. One example of such hybrid financing is Calpine's revolving construction facilities that are used to finance portfolios of merchant power plants.     

Pricing Effects of the Decision to Sell or Hold Adjustable Rate Mortgage Loans in a Portfolio

Residential mortgage originators can transfer loans to ultimate lenders quickly and efficiently using the secondary mortgage market. Some adjustable rate mortgage (ARM) lenders use this outlet consistently while others hold whole loans in their portfolios on a long-term basis. Selling and holding lenders should respond to different economic factors when setting yields on ARM loans originated because their long-term positions in the loans are so diverse. This paper develops and tests a model of differential pricing behavior for selling and holding strategies. Empirical results support the notion that lenders use different factors to price loans and that these factors are related to the risks faced by the originating lender given its origination strategy. Additional findings suggest that institutional and firm-specific pricing tendencies exist in the primary mortgage market for adjustable rate debt.     

Real Estate Versus Financial Wealth in Consumption

The consumption function for the U.S. economy is estimated with real estate and financial wealth for quarterly data for 1952:1–2001:4. An additional dollar of real estate wealth increases consumption by 8 cents in the current year, as compared with only 2 cents for financial wealth. The results are consistent with theoretical bounds on the marginal propensity to consume from aggregate wealth. The decline in the stock market during 2000–2001 had a limited impact on aggregate demand in part because of an offsetting real estate wealth effect.     

电子商务：下一个大事件

今年早些时候，社交网络是业界热点，而过去几个月我们注意到，不少公司对电子商务很感兴趣。当我们的研究逐步深入，才发现电子商务的发展的确让人震惊。     

Emerging market hedge funds: Do they perform like regular hedge funds?

In this study, we investigate whether the performance of emerging market hedge funds (EMHFs) follow a pattern similar to that reported for advanced market hedge funds. In contrast to the pre-2007 period, our results for the post-2006 period show that EMHFs exhibit performance patterns similar to those reported for hedge funds that focus on the developed markets. Unlike in the pre-2007 period, EMHFs in general do not exhibit significant exposure to specific asset classes in the post-2006 period. On a risk-adjusted basis, we find that EMHFs do not consistently outperform the benchmarks. The reported performance patterns may provide useful insights to both academics and portfolio managers.     

Interactive 3-D computation of fault surfaces using level sets

Deformable implicit surfaces, implemented with level set methods, have demonstrated a great potential in the computational sciences for applications such as modeling, simulation, and segmentation. They allow implicit handling of complex topologies deformed by operations where large changes can occur without destroying the level set representation. The use of level set techniques for the computation and segmentation of plane-like and high positive curvature features is nontrivial. We present a technique for representing and extracting fault surfaces from 3-D seismic attribute data such that 2-manifolds can be interactively computed and segmented. We present our approach as an interactive workflow that generates highly accurate fault surfaces.     

Consumption dynamics and demographics of Canadian wine consumers: Retailing insights from the tasting room channel

This study facilitates a better understanding of the socio-demographics and consumption dynamics of wine consumers using the retailing ‘platform’ of the winery tasting room with them as visitors to it in a wine region environment. The overall aim was to gain some insights on gender and age generation-related consumer behaviour, wine type preferences, and their link to retail channel behaviour. Systematic random sampling yielded a total of 659 useable surveys collected at various tasting rooms in the Niagara Peninsula Wine Region in Ontario, Canada. Specific differences exist in the wine consumption behaviour and wine type preferences of males and females and between generational cohorts, specifically Millennial and older consumers. Whereas females and males do not differ much in quantity consumed and spend on wine, they do differ greatly in wine type consumption with females drinking significantly more white and males more red wine. Wine type consumption was shown to be moderated by not only classical demographic variables, but also by the retail outlets preferred for wine purchase. Females buy more of their wine from foodservice on-trade retail outlets such as restaurants, while Millennials frequent the tasting room channel much less than older consumers. There are strong indications that the higher the wine tourism activity level, the higher the wine consumption (usage) level of the consumers. It is possible to direct marketing strategies at wine consumers in accordance with their gender and lifecycle stage as far as certain behavioural and sensory aspects of the product is concerned. The winery tasting room is the most obvious retail channel vehicle to reach people with high tourism activity factor levels who also happen to be the high usage consumers in the wine market.