Introduction

MOCT-MOST: Economic Policy in Transitional Economies -     

Book reviews

Ohne Zusammenfassung     

Convertible Bond Arbitrage: Risk and Return

Abstract:  This paper specifies a simulated convertible bond arbitrage portfolio to characterise the risks in convertible bond arbitrage. For comparison the risk profile of convertible bond arbitrage hedge fund indices at both monthly and daily frequencies is also examined. Results indicate that convertible bond arbitrage is positively related to default and term structure risk factors. These risk factors are augmented with the simulated convertible bond arbitrage portfolio, mimicking a passive investment in convertible bond arbitrage, to assess the risk and return of individual hedge funds. We provide estimates of the performance of two hedge fund indices (an equally weighted and value weighted index) and a sample of convertible bond arbitrage hedge funds using a factor model methodology. Lagged and contemporaneous observations of the risk factors are specified, controlling for illiquidity in the securities held by funds. Our results cover two time periods. Initially we find evidence of abnormal risk adjusted returns in the individual hedge fund data and the equally weighted hedge fund index and no evidence of abnormal risk adjusted returns in the value weighted hedge fund index. When we examine performance during the credit crisis of 2007 and 2008 we find evidence of negative abnormal returns amongst individual hedge funds and the hedge fund indices.     

Financial Reform in China: Introduction

MOCT-MOST: Economic Policy in Transitional Economies -     

Cyberspace: The Final Frontier?

The science fiction series of the '70's, Star Trek, began all its telecastings with the announcement "Space: The Final Frontier." Star Trek chronicled the voyage of a crew navigating their way through space. For the travelers, space seemed like the last unknown entity that needed to be investigated. As they journeyed, they learned of the boundless nature of space. Each episode portrayed a group of folks encountering new situations, attempting to solve another problem, or strategizing how to overcome an obstacle.While few people will ever have a chance to travel in a spaceship to discover the universe, most have trekked through cyberspace. Cyberspace is the coined term for the computer world. Little would the Star Trek's producer, Gene Roddenberry, know what expansive limits the computer age would usher in. With the advent of the computer age, we recognize that we have not even begun to identify the powerful magnitude of the computer. At each juncture or moment of discovery a new question is raised, impact is assessed and plans are strategically mapped out.This paper will identify the ways and places computers have impacted our lives and the corresponding ethical questions they raise because they affect human relationships and social institutions. It will then study one particular aspect of computers: electronic mail (email). Email is the normative way of communicating across computer networks. It has its benefits and challenges which will be named and discussed.