scholarly journals Portfolio Claustrophobia: Asset Pricing in Markets with Illiquid Assets

2009 ◽  
Vol 99 (4) ◽  
pp. 1119-1144 ◽  
Author(s):  
Francis A Longstaff
Keyword(s):  
Asset Pricing ◽  
Heterogeneous Agents ◽  
Exchange Economy ◽  
Equilibrium Price ◽  
The Other ◽  
Dramatic Effect ◽  
Blackout Period ◽  
Illiquid Assets

Many classes of assets are illiquid or nonmarketable in that they cannot always be traded immediately. Thus, a portfolio position in these becomes at least temporarily irreversible. We study the asset-pricing implications of this type of illiquidity in an exchange economy with heterogeneous agents. In this market, one asset is always liquid. The other asset can be traded initially, but then not again until after a “blackout” period. Illiquidity has a dramatic effect. Agents abandon diversification and choose polarized portfolios instead. The value of liquidity can represent a large portion of the equilibrium price of an asset. (JEL G11, G12)

Renting Balance Sheet Space: Intermediary Balance Sheet Rental Costs and the Valuation of Derivatives

2020 ◽  
Vol 33 (11) ◽  
pp. 5051-5091 ◽  
Author(s):  
Matthias Fleckenstein ◽  
Francis A Longstaff
Keyword(s):  
Asset Pricing ◽  
Financial Markets ◽  
Balance Sheet ◽  
Futures Market ◽  
The Other ◽  
Capital Regulation ◽  
Debt Overhang ◽  
Interest Rate Futures ◽  
The Interest Rate ◽  
The Cost

Abstract A long-standing asset pricing puzzle is that the funding rates in derivatives contracts often differ from those in cash markets. We propose that the cost of renting intermediary balance sheet space may help resolve this puzzle. We study a persistent basis in what is arguably the largest derivatives market, namely, the interest rate futures market. This basis is strongly related to exogenous measures of intermediary balance sheet usage and proxies for the balance sheet costs imposed by debt overhang problems and capital regulation. These results extend to the cash derivatives bases documented in many of the other largest financial markets.

Translating Irony in Popular Fiction

Babel ◽  
2001 ◽  
Vol 47 (2) ◽  
pp. 97-108 ◽  
Author(s):  
Daniel Linder
Keyword(s):  
Key Words ◽  
Popular Fiction ◽  
The Other ◽  
The Novel ◽  
Raymond Chandler ◽  
Dramatic Effect

Raymond Chandler published his first novel, The Big Sleep, in 1939. There are two Spanish translations of the novel, both titled El sueño eterno, one published in 1958 by Aguilar (Madrid) and the other in 1972 by Barral (Barcelona). This study analyzes irony in the two Spanish translations and concludes that both translations fail to reflect the degree of irony present in Chandler’s original, especially with respect to the translation of two key words, cute and giggle, and the dramatic effect of the novel’s climax is dampened as a consequence. Also, it is demonstrated that the 1972 version is, if not an outright plagiarism of the earlier 1958 version, at the very least a version which does not meet the criteria for originality.

scholarly journals Role of Plasmids in Lactobacillus brevis BSO 464 Hop Tolerance and Beer Spoilage

2014 ◽  
Vol 81 (4) ◽  
pp. 1234-1241 ◽  
Author(s):  
Jordyn Bergsveinson ◽  
Nina Baecker ◽  
Vanessa Pittet ◽  
Barry Ziola
Keyword(s):  
Lactic Acid ◽  
Lactic Acid Bacteria ◽  
Lactobacillus Brevis ◽  
The Other ◽  
Plasmid Curing ◽  
Content Type ◽  
Dramatic Effect ◽  
Plasmid Loss ◽  
Beer Spoilage

ABSTRACTSpecific isolates of lactic acid bacteria (LAB) can grow in the harsh beer environment, thus posing a threat to brew quality and the economic success of breweries worldwide. Plasmid-localized genes, such ashorA,horC, andhitA, have been suggested to confer hop tolerance, a trait required for LAB survival in beer. The presence and expression of these genes among LAB, however, do not universally correlate with the ability to grow in beer. Genome sequencing of the virulent beer spoilage organismLactobacillus brevisBSO 464 revealed the presence of eight plasmids, with plasmids 1, 2, and 3 containinghorA,horC, andhitA, respectively. To investigate the roles that these and the other five plasmids play inL. brevisBSO 464 growth in beer, plasmid curing with novobiocin was used to derive 10 plasmid variants. Multiplex PCRs were utilized to determine the presence or absence of each plasmid, and how plasmid loss affected hop tolerance and growth in degassed (noncarbonated) beer was assessed. Loss of three of the eight plasmids was found to affect hop tolerance and growth in beer. Loss of plasmid 2 (horCand 28 other genes) had the most dramatic effect, with loss of plasmid 4 (120 genes) and plasmid 8 (47 genes) having significant, but smaller, impacts. These results support the contention that genes on mobile genetic elements are essential for bacterial growth in beer and that beer spoilage ability is not dependent solely on the three previously described hop tolerance genes or on the chromosome of a beer spoilage LAB isolate.

Hearing the Syrinx in Euripidean Tragedy

2018 ◽  
Author(s):  
Naomi Weiss
Keyword(s):  
Fifth Century ◽  
The Other ◽  
Dramatic Effect ◽  
The One ◽  
Double Pipe

References to the syrinx are mostly absent from extant tragedy until the late fifth century BC, when the instrument suddenly starts appearing in Euripides’ plays, especially in the choral odes. This chapter demonstrates that the syrinx is almost always mentioned alongside the aulos, the double pipe that accompanied dramatic choreia, or in such a way that the aulos is strongly suggested, so that the one instrument is meant to be heard as the other. Such instrumental mimesis in Euripides’ tragedies does more than just show off his own skill and engagement with contemporary musical trends and discourse: it is also always used for a particular dramatic effect, thus providing evidence of his increasing experimentation towards the end of his career with the role(s) music could play within a tragedy.

scholarly journals Risk Exchange with Distorted Probabilities

2006 ◽  
Vol 36 (1) ◽  
pp. 219-243 ◽  
Author(s):  
Andreas Tsanakas ◽  
Nicos Christofides
Keyword(s):  
Decision Making ◽  
Real World ◽  
Heterogeneous Agents ◽  
Ambiguity Aversion ◽  
Asset Returns ◽  
Market Risk ◽  
Exchange Economy ◽  
Important Distinction ◽  
Distortion Functions ◽  
Rank Dependence

An exchange economy is considered, where agents (insurers/banks) trade risks. Decision making takes place under distorted probabilities, which are used to represent either rank-dependence of preferences or ambiguity with respect to real-world probabilities. Pricing formulas and risk allocations, generalising the results of Bühlmann (1980, 1984) are obtained via the construction of aggregate preferences from heterogeneous agents’ utility and distortion functions. This involves the introduction of a novel ‘collective ambiguity aversion’ coefficient. It is shown that probability distortion changes insurers’ behaviour, who trade not only to share the aggregate market risk, but are also found to bet against each other. Moreover, probability distortion tends to increase the price of insurance (increase asset returns). While the cases of rank-dependence and ambiguity are formally similar, an important distinction emerges as for rank-dependent preferences equilibria are determinate, while for ambiguity they are generally indeterminate.

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