scholarly journals Challenges in currency derivatives management in the OTC market in Poland during the Covid-19 pandemic

2021 ◽  
pp. 254-263
Author(s):  
Piotr Wybieralski
Keyword(s):  
Market Volatility ◽  
Professional Literature ◽  
Market Participants ◽  
Preventive Actions ◽  
Force Majeure ◽  
Early Settlement ◽  
Currency Derivatives ◽  
Volatility Analysis ◽  
Crisis Conditions ◽  
The Impact

Purpose: The aim of the chapter is to analyze the impact of the Covid-19 pandemic and market volatility increase on risk management in the OTC derivatives market in Poland. Design/methodology/approach: The chapter describes the legal background of derivatives trading with non-financial enterprises, then identifies the main risks, and discusses possible actions of market participants. In this regard, the study conducts volatility analysis based on selected market data. Findings: Due to volatility increase and the resulting negative valuation of non-matured currency derivatives by Polish exporters, margin call clauses were triggered, entailing the need to post additional collateral or prematurely close contracts. The described situation is particularly difficult when the pre-settlement limit is fully utilized on deal date, usually in the case of long-lasting large open exposures in non-flexible transactions. Research implications: To determine market risk, studies often apply the VaR approach. Inthis way, the specific amount of risk is analyzed on adaily basis and used by banks both to determine the maximum amount of the contract and to control pre-settlement risk. Apart from many advantages of the VaR approach, there are some drawbacks, especially related to volatility estimation, which usually relies on historical market fluctuations. It may cause that the risk will not be properly valued under crisis conditions. In such situations, supplementary methods should be also implemented (stresstests). Practical implications: Under high market volatility, preventive actions should be prepared in advance, including treasury limit increase, additional funds for collaterals, or contracts modification (flexible products should be considered).Originality and value: The study covers a challenge that banks face, which is rarely described in professional literature but very serious for bank management. Under normal market conditions, if the margin call clause appears and no additional collateral is posted, the transaction should be closed to limit the counterparty’s loss. However, this type of action during the pandemic may impose the risk of force majeure. From the company perspective, using such instruments threatens their early settlement and the need to finance closeout amount.

An Introduction to Oil Market Volatility Analysis

2012 ◽  
Author(s):  
Walid Omar Matar ◽  
Saud Al-Fattah ◽  
Tarek N. Atallah ◽  
Axel Pierru
Keyword(s):  
Market Volatility ◽  
Oil Market ◽  
Volatility Analysis

scholarly journals Volatility Modeling: An Overview of Equity Markets in the Euro Area during COVID-19 Pandemic

Mathematics ◽  
2021 ◽  
Vol 9 (11) ◽  
pp. 1212
Author(s):  
Pierdomenico Duttilo ◽  
Stefano Antonio Gattone ◽  
Tonio Di Di Battista
Keyword(s):  
Stock Market ◽  
Euro Area ◽  
Risk Premium ◽  
Stock Markets ◽  
Market Volatility ◽  
Stock Market Volatility ◽  
Volatility Modeling ◽  
The Impact ◽  
Second Wave ◽  
Daily Returns

Volatility is the most widespread measure of risk. Volatility modeling allows investors to capture potential losses and investment opportunities. This work aims to examine the impact of the two waves of COVID-19 infections on the return and volatility of the stock market indices of the euro area countries. The study also focuses on other important aspects such as time-varying risk premium and leverage effect. This investigation employed the Threshold GARCH(1,1)-in-Mean model with exogenous dummy variables. Daily returns of the euro area stock markets indices from 4th January 2016 to 31st December 2020 has been used for the analysis. The results reveal that euro area stock markets respond differently to the COVID-19 pandemic. Specifically, the first wave of COVID-19 infections had a notable impact on stock market volatility of euro area countries with middle-large financial centres while the second wave had a significant impact only on stock market volatility of Belgium.

Stock Market Volatility and Terrorism: New Evidence from the Markov Switching Model

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Faheem Aslam ◽  
Hyoung-Goo Kang ◽  
Khurrum Shahzad Mughal ◽  
Tahir Mumtaz Awan ◽  
Yasir Tariq Mohmand
Keyword(s):  
Stock Market ◽  
Significant Risk ◽  
Market Volatility ◽  
Terrorist Attacks ◽  
Stock Market Volatility ◽  
Markov Switching Model ◽  
Physical Damage ◽  
Stock Market Returns ◽  
Switching Model ◽  
The Impact

AbstractTerrorism in Pakistan poses a significant risk towards the lives of people by violent destruction and physical damage. In addition to human loss, such catastrophic activities also affect the financial markets. The purpose of this study is to examine the impact of terrorism on the volatility of the Pakistan stock market. The financial impact of 339 terrorist attacks for a period of 18 years (2000–2018) is estimated w.r.t. target type, days of the week, and surprise factor. Three important macroeconomic variables namely exchange rate, gold, and oil were also considered. The findings of the EGARCH (1, 1) model revealed that the terrorist attacks targeting the security forces and commercial facilities significantly increased the stock market volatility. The significant impact of terrorist attacks on Monday, Tuesday, and Thursday confirms the overreaction of investors to terrorist news. Furthermore, the results confirmed the negative linkage between the surprise factor and stock market returns. The findings of this study have significant implications for investors and policymakers.

scholarly journals Representations of Psychoactive Drugs’ Use in Mass Culture and Their Impact on Audiences

2021 ◽  
Vol 18 (11) ◽  
pp. 6000
Author(s):  
Marek A. Motyka ◽  
Ahmed Al-Imam
Keyword(s):  
Young People ◽  
Drug Use ◽  
Mass Culture ◽  
Film Music ◽  
Psychoactive Drugs ◽  
Frequent Contact ◽  
Preventive Actions ◽  
The Impact ◽  
Staying At Home

Drug use has been increasing worldwide over recent decades. Apart from the determinants of drug initiation established in numerous studies, the authors wish to draw attention to other equally important factors, which may contribute to augmenting this phenomenon. The article aims to draw attention to the content of mass culture, especially representations of drug use in mass media, which may influence the liberalization of attitudes towards drugs and their use. The role of mass culture and its impact on the audience is discussed. It presents an overview of drug representations in the content of mass culture, e.g., in film, music, literature, and the occurrence of drug references in everyday products, e.g., food, clothes, and cosmetics. Attention was drawn to liberal attitudes of celebrities and their admissions to drug use, particularly to the impact of the presented positions on the attitudes of the audience, especially young people for whom musicians, actors, and celebrities are regarded as authorities. Indications for further preventive actions were also presented. Attention was drawn to the need to take appropriate action due to the time of the COVID-19 pandemic when many people staying at home (due to lockdown or quarantine) have the possibility of much more frequent contact with mass culture content, which may distort the image of drugs.

scholarly journals Light a lamp and look at the stock market

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Radeef Chundakkadan
Keyword(s):  
Stock Market ◽  
Financial Distress ◽  
Investor Sentiment ◽  
Downside Risk ◽  
Bond Yields ◽  
Risky Assets ◽  
Market Participants ◽  
Market Return ◽  
The Impact

AbstractIn this study, we investigate the impact of the light-a-lamp event that occurred in India during the COVID-19 lockdown. This event happened across the country, and millions of people participated in it. We link this event to the stock market through investor sentiment and misattribution bias. We find a 9% hike in the market return on the post-event day. The effect is heterogeneous in terms of beta, downside risk, volatility, and financial distress. We also find an increase (decrease) in long-term bond yields (price), which together suggests that market participants demanded risky assets in the post-event day.

Mothering Identity Experiences: A Backwards Glance

2021 ◽  
pp. 106648072110239
Author(s):  
Robyn T. Simmons ◽  
Kelly Coker ◽  
Brooks B. Hanks ◽  
Donna S. Sheperis ◽  
Lynn Bohecker
Keyword(s):  
Growth And Development ◽  
Developmental Stages ◽  
Human Growth ◽  
Professional Literature ◽  
Developmental Progression ◽  
Letting Go ◽  
Human Growth And Development ◽  
The Impact ◽  
Universal Themes

Aspects of human growth and development have been studied since the inception of psychology as a field of science. The impact of the quality of mothering on children has been highly researched. However, little attention has been paid in the professional literature to the experiences of mothers as their children move through developmental stages. The focus of this hermeneutic phenomenology study was to investigate how mothers’ experiences of their child's growth and development changed her perceptions of her identity and herself. Participants were eight women who had launched the oldest child from the home within the last 2 years. Extensive data analysis and triangulation procedures were conducted to develop themes. Universal themes experienced by all participants were categorized as internal (questioning, comparison, being purposeful, and feeling supported) and external (experiencing joy). Some participant experiences were influenced by incidental themes such as subsequent children, expectations versus reality, and spirituality. Participants’ experience of their mothering role was also impacted by the process of letting go through the developmental progression of their children. Clinical implications are discussed.

Ensuring food security amid the spread of COVID-19

Ekonomika APK ◽  
2021 ◽  
Vol 321 (7) ◽  
pp. 16-27
Author(s):  
Mykola Pugachov ◽  
Olha Khodakivska ◽  
Oleksandr Shpykuliak ◽  
Nataliia Patyka ◽  
Olena Hryschenko
Keyword(s):  
Food Security ◽  
Food Products ◽  
The State ◽  
Practical Significance ◽  
Economic Science ◽  
Political Factors ◽  
Healthy Nutrition ◽  
Economic Methods ◽  
Force Majeure ◽  
The Impact

The purpose of the article is to carry out an analytical assessing the impact of the COVID-19 pandemic on the level of food security in Ukraine. Research methods. The research was based on general scientific and economic methods, the creative heritage of the founders of economic science, publications of Ukrainian and foreign scientists on the impact of quarantine restrictions related to the spread of the COVID-19 pandemic on the level of food security of the country, regulatory legal acts, data from the State Statistics Service of Ukraine, electronic resources and other sources. The monographic approach is used to analyze the dynamics of the actual consumption of agri-food products and the level of food independence for individual agri-food products. Normative and positive approaches are used to highlight real risks and threats to food security. A number of techniques of abstract-logical tools made it possible to make a scientific and applied generalization of the material presented, to formulate intermediate and final conclusions and proposals. Research results. An analytical assessing the impact of the COVID-19 pandemic on the consumption of agri-food products and the level of food independence for individual agri-food products has been carried out. It has been proven that Ukraine produces enough food to ensure healthy nutrition for citizens. It has been determined that due to the low purchasing power of the population, groups of citizens with low incomes have limited access to essential agricultural and food products. In the medium and long term, there will be a shortage of food resources and global food inflation, the situation in agricultural markets will remain unstable, and trade will continue to develop under the influence of not only competition, but also political factors. Scientific novelty. The theoretical and methodological provisions, scientific, methodological and practical approaches to determining the factors of influence of quarantine measures and the spread of COVID-19 to the level of food security of the state have been substantiated. Assessing the impact of quarantine measures and the spread of COVID-19 on food security made it possible to identify the main risks of ensuring the country's food security. Practical significance. The applied aspects of the study can be taken into account in the formation of programs for the socio-economic development of the agri-food sector of Ukraine, which will increase the effectiveness of state initiatives aimed at ensuring food security of the state and increase the country's readiness for force majeure threats. Tabl.: 7. Figs.: 3. Refs.: 17.

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