scholarly journals An Addendum and a Short Comment on the Paper

1999 ◽  
Vol 29 (1) ◽  
pp. 165-171 ◽  
Author(s):  
Alois Gisler ◽  
Patrick Frost
Keyword(s):  
Capital Market ◽  
Risk Premium ◽  
Low Frequency ◽  
Convertible Bond ◽  
Storm Event ◽  
Knock Out ◽  
Scientific Discussion ◽  
Financial Products ◽  
Conservative Estimation ◽  
Short Comment

In January 1997, Winterthur Insurance, together with Credit Suisse First Boston (CSFB), issued the first listed CAT bond. The annual “WINCAT0 coupons of this three-year convertible bond are knocked out if any single storm event damages more than 6,000 vehicles insured by Winterthur Insurance in Switzerland.This was a completely new way of securing insurance risks. The main intention was to test the Swiss capital market for such products and to make investors acquainted with them. Thereby Winterthur, together with CSFB, set new standards in product transparency, fairness of pricing and investor education by making the historical data available via internet and by publishing a special brochure (CSFB (1997)), where the pricing and the mathematical modelling are described in detail. This is also a prerequisite to enable a scientific discussion on pricing aspects of such new financial products. The developers of the bond are therefore grateful to Mr. Schmock for this valuable scientific contribution which can be seen as a thorough and profound statistical analysis on the knock-out probability for the purpose of quantifying the model uncertainty.In Section 2 we briefly summarize the whole pricing of the bond at the issue date and show that there were several risk premium elements in this pricing where the conservative estimation of the knock-out probability was just one of them. In Section 3 we consider the modelling of low frequency risks from a practitioner's standpoint and formulate some requirements from practice. In Section 4 we make some further comments on the modelling of the Wincat data. Section 5 is a short summary.

scholarly journals Gut Microbiome in BALB/c and C57BL/6J Mice Undergoing Experimental Thyroid Autoimmunity Associate with Differences in Immunological Responses and Thyroid Function

2018 ◽  
Vol 50 (12) ◽  
pp. 932-941 ◽  
Author(s):  
Sajad Moshkelgosha ◽  
Giulia Masetti ◽  
Utta Berchner-Pfannschmidt ◽  
Hedda Verhasselt ◽  
Mareike Horstmann ◽  
...  
Keyword(s):  
Gut Microbiota ◽  
Thyroid Function ◽  
Thyroid Autoimmunity ◽  
Low Frequency ◽  
Inbred Strains ◽  
Experimental Models ◽  
Immune Response Gene ◽  
Knock Out ◽  
Immunological Responses ◽  
Thyroid Stimulating Antibodies

AbstractExperimental models of hyperthyroid Graves’ disease (GD) and Graves’ orbitopathy (GO) are efficiently developed by genetic immunisation by electroporation with human thyrotropin hormone receptor (hTSHR) A-subunit plasmid in female BALB/c (H-2d) mice. We investigated susceptibility in C57BL/6 J (H-2b) animals to allow studies on disease mechanisms in transgenic and immune response gene knock-out mice. Higher numbers of female C57BL/6 J were positive for pathogenic thyroid stimulating antibodies, but induced hyperthyroidism remained at a low frequency compared to BALB/c animals. Assessment of hTSHR specific T cells showed reduced proliferation in C57BL/6 J animals accompanied with anti-inflammatory IL-10, with less pro-inflammatory IFN-γ compared to BALB/c. Whilst the orbital tissue from immune BALB/c mice showed inflammation and adipogenesis, in contrast C57BL/6 J animals showed normal pathology. We characterised the gut microbiota using 16 S ribosomal RNA gene sequencing to explore its possible pathogenic role in the model. Despite being housed under identical conditions, we observed significantly different organisation of the microbiota (beta-diversity) in the two strains. Taxonomic differences were also noted, with C57BL/6 J showing an enrichment of Operational Taxonomic Units (OTUs) belonging to the Paludibacter and Allobaculum, followed by Limibacter, Anaerophaga and Ureaplasma genera. A higher number of genera significantly correlating with clinical features was observed in C57BL/6 J compared to BALB/c; for example, Limibacter OTUs correlated negatively with thyroid-stimulating antibodies in C57BL/6 J mice. Thus, our data suggest gut microbiota may play a pivotal immunomodulatory role that differentiates the thyroid function and orbital pathology outcome in these two inbred strains undergoing experimental GO.

Abstract 327: Attenuated Beta-Adrenergic Response in the Tric-a Knock Out Mice

Circulation ◽  
2018 ◽  
Vol 138 (Suppl_2) ◽  
Author(s):  
Yuichi Toyama ◽  
Manabu Yonekura ◽  
Chong Han ◽  
Hirofumi Tomita ◽  
Hiroshi Takeshima ◽  
...  
Keyword(s):  
Heart Rate ◽  
Action Potential ◽  
Sympathetic Nerve ◽  
Calcium Release ◽  
Calcium Influx ◽  
Ryanodine Receptors ◽  
Low Frequency ◽  
Beta Adrenergic ◽  
Knock Out ◽  
Nerve Regulation

Trimeric intracellular cation (TRIC) channels are expressed on the surface of sarcoplasmic reticulum (SR) and regulate calcium release from ryanodine receptors (RyRs). In a previous study, Tric-a knock out (KO) mice showed diminished calcium release from RyRs following increased calcium-influx via L-type calcium channels, which results in enhanced vascular resistance and non-dipper type hypertension. Decreased activation of RyR1 by PKA in skeletal myocytes in Tric-a KO mice is also known. However, physiological importance of TRIC channels on cardiac rhythm formation and its importance on the sympathetic nerve regulation are still obscure. Therefore, we aimed to clarify the effects of Tric-a ablation on cardiac pace making using Tric-a KO mice. We measured systolic blood pressure (SBP) with tail-cuff method, ECG and spontaneous action potential with microelectrode in the Tric-a KO and wild type (WT) mice. Isoproterenol or propranolol was used for sympathetic nerve manipulation. Furthermore, we evaluated heart rate variability (HRV). Tric-a KO mice tended to show limited responses to isoproterenol (0.3 mg/kg) than the WT mice (-27 ± 6 and -32 ± 6 mmHg, n = 10, p =0.70), and to propranolol (4 ± 6 and 13 ± 7 mmHg, n = 5~6, p =0.48). In ECG analysis, ablation of Tric-a gene resulted in significantly decreased heart rate changes to isoproterenol (23 ± 6 and 99 ± 15 bpm, Tric-a KO and WT mice, respectively, n = 9~10, p <0.001). Response to propranolol was also significantly decreased in the Tric-a KO mice (-28 ± 20 and -122 ± 14 bpm, Tric-a KO and WT mice, respectively, n = 9~10, p <0.001). In the action potential recordings, Tric-a KO mice showed significantly decreased sinus rate changes to 1 microM isoproterenol (35 ± 9 and 71 ± 10 bpm, Tric-a KO and WT mice, respectively, n = 6~8, p <0.05). In HRV analysis, low-frequency/high-frequency (LF/HF) ratio tended to be lower in the Tric-a KO mice than the WT mice under the administration of isoproterenol (0.22 ± 0.31 and 0.65 ± 0.16 bpm, Tric-a KO and WT mice, respectively, n = 9~11, p =0.16), suggesting lower sympathetic nerve tonus in the Tric-a KO mice. In conclusion, our data indicates that Tric-a KO mice showed attenuated responses to beta-adrenergic stimulus, which indicates involvement of TRIC-A channels in sympathetic nerve regulation.

Gains from Integration? An Empirical Hint from the Eurozone

2020 ◽  
Vol 28 (3) ◽  
pp. 483-512
Author(s):  
Ku-Hsieh Chen ◽  
Jen-Chi Cheng ◽  
Joe-Ming Lee ◽  
Chih-Chun Chen
Keyword(s):  
Risk Factor ◽  
Panel Data ◽  
Emerging Economies ◽  
Capital Market ◽  
Risk Premium ◽  
Output Growth ◽  
Market Return ◽  
Productivity Gain ◽  
Group A ◽  
Degree Of Risk

Has the eurozone (EZ) really gained from integration? This study applied two econometric frameworks, mGARCH and gMMPI, to test this hypothesis, using panel data that span 1996–2014, a total of 19 years, involving the EZ, EU, G8, G20 and some emerging economies. The empirical outcomes initially showed that the EZ economies experienced neither superior output growth nor a better capital market return than non-EZ economies or the pre-EZ period. They further suggested that each EZ country had a higher degree of risk bearing and, as a group, a greater risk linkage. Moreover, the results indicated that the EZ had a higher productivity gain if the risk premium was counted as part of productivity. Nonetheless, the EZ did not show a substantial productivity gain when the effect of the risk factor was controlled. The ratio of risk bearing to risk premium gain was shown to be 1 to 0.97. The general conclusion is that, other than the risk premium, there was no extra productivity gain for the EZ from taking the risk.

scholarly journals Integrated sea storm management strategy: the 29 October 2018 event in the Adriatic Sea

2020 ◽  
Vol 20 (1) ◽  
pp. 73-93 ◽  
Author(s):  
Christian Ferrarin ◽  
Andrea Valentini ◽  
Martin Vodopivec ◽  
Dijana Klaric ◽  
Giovanni Massaro ◽  
...  
Keyword(s):  
Early Warning ◽  
Adriatic Sea ◽  
Early Warning Systems ◽  
Integrative Approach ◽  
Storm Event ◽  
Great Effort ◽  
Warning Systems ◽  
Model Ensemble ◽  
Conservative Estimation ◽  
Coastal Risk

Abstract. Addressing coastal risks related to sea storms requires an integrative approach which combines monitoring stations, forecasting models, early warning systems, and coastal management and planning. Such great effort is sometimes possible only through transnational cooperation, which becomes thus vital to face, effectively and promptly, the marine events which are responsible for damage impacting the environment and citizens' life. Here we present a shared and interoperable system to allow a better exchange of and elaboration on information related to sea storms among countries. The proposed integrated web system (IWS) is a combination of a common data system for sharing ocean observations and forecasts, a multi-model ensemble system, a geoportal, and interactive geo-visualisation tools to make results available to the general public. The multi-model ensemble mean and spread for sea level height and wave characteristics are used to describe three different sea condition scenarios. The IWS is designed to provide sea state information required for issuing coastal risk alerts over the analysed region as well as for being easily integrated into existing local early warning systems. This study describes the application of the developed system to the exceptional storm event of 29 October 2018 that caused severe flooding and damage to coastal infrastructure in the Adriatic Sea. The forecasted ensemble products were successfully compared with in situ observations. The hazards estimated by integrating IWS results in existing early warning systems were confirmed by documented storm impacts along the coast of Slovenia, Emilia-Romagna and the city of Venice. For the investigated event, the most severe simulated scenario results provide a realistic and conservative estimation of the peak storm conditions to be used in coastal risk management.

RATE OF COSTS ON INVESTMENT CAPITAL IN EMERGING MARKETS

2019 ◽  
Vol 6 ◽  
pp. 665 ◽  
Author(s):  
Oleg Tereshenko ◽  
Nataliya Voloshanyk ◽  
Dmytro Savchuk
Keyword(s):  
Emerging Markets ◽  
Discount Rate ◽  
Capital Market ◽  
Risk Premium ◽  
Emerging Market ◽  
Weighted Average ◽  
Capital Costs ◽  
Investment Capital ◽  
Capm Model ◽  
Risk Free Rate

To date, there is no adequate methodology for calculating the discount rate that would satisfy most financial analysts. The most common approach to determining the discount rate is to use the weighted average cost of capital (WACC) algorithm. The calculation of capital costs (discount rates) in emerging market countries (EM) is characterized by a number of problems related to the information inefficiency of the capital market, instability of demand for products, inflation, macroeconomic and legal uncertainty and a lack of proper payment discipline. Even more complex are the corresponding calculations during the financial crisis, accompanied by hyperinflation, a fall or significant fluctuations in the rate of the national monetary unit, trade wars, and the collapse of the banking system.Especially problematic for emerging markets is the calculation of the cost of equity (investment) capital. In developed markets, the classical CAPM model is used for these purposes. Taking into account the lack of an effective capital market in EM-related countries, it is quite difficult to determine the standard parameters of the model (risk-free rate of return, market risk premium, beta factor). Significant problems also lie in the sources and shadow schemes for paying high premiums for the risks of investing capital in EM. The aim of the paper is to substantiate recommendations on the procedure for calculating the rate of costs for own (investment) capital, taking into account the specifics of corporate activities in countries related to EM. 

scholarly journals MARKET SEGMENTATION AND NOISE TRADER RISK

2000 ◽  
Vol 03 (01) ◽  
pp. 85-100 ◽  
Author(s):  
VIHANG ERRUNZA ◽  
KED HOGAN ◽  
MAO-WEI HUNG
Keyword(s):  
Market Segmentation ◽  
Capital Market ◽  
Risk Premium ◽  
International Investment ◽  
International Capital ◽  
Fully Integrated ◽  
Asset Pricing Model ◽  
Noise Trader ◽  
Cross Border ◽  
Investment Barriers

A simple asset pricing model is developed to take into account two important characteristics in global investments: market segmentation and noise trader risk. Our results show the removal of international investment barriers and cross-border listings have not led to a fully integrated international capital market. We also show that different degree of investor rationality across borders induces an additional component of risk premium which is related to the "noise spill-over effect".

scholarly journals Muslim religiosity and purchase intention of different categories of Islamic financial products

2020 ◽  
Author(s):  
FT Newaz ◽  
Kim Fam ◽  
RR Sharma
Keyword(s):  
Capital Market ◽  
Rapid Growth ◽  
Purchase Intention ◽  
Financial Products ◽  
Muslim Religiosity ◽  
Buying Behaviour ◽  
The Relationship

© 2016 Macmillan Publishers Ltd. Considering the rapid growth of Islamic Financial Products (IFPs) worldwide and the limited research on Muslims' buying behaviour of such products, this research examines the relationship between religiosity, consumer buying attitude and purchase intention towards different categories of IFPs. The findings suggest that buying attitude has full mediation for deposit, credit and capital market products and partial mediation for insurance products on the association between Muslim religiosity and their purchase intention. Interestingly, religiosity influenced positively even for insurance and capital market products. This is in contrast with our hypothesised relationships for capital and insurance products. The study contributes to the literature by enhancing our understanding of the complex mediating religiosity - buying attitude - purchase intention relationships for different categories of IFPs.

scholarly journals Methodology of calculating risk premiums in the environment of the Czech Republic and its comparison with Damodaran

2021 ◽  
Vol 91 ◽  
pp. 01045
Author(s):  
Jiri Kucera ◽  
Lenka Maskova
Keyword(s):  
Czech Republic ◽  
Capital Market ◽  
Risk Premium ◽  
Country Risk ◽  
Foreign Investors ◽  
The Czech Republic ◽  
Risk Premiums ◽  
Us States ◽  
The Us ◽  
The Usa

Investors' decisions are largely influenced by the riskiness of the country. Several different approaches are available to calculate this risk, but even so, the values set by Damodaran are usually used, even for non-US states. The aim of the paper is to propose a methodology for creating a risk premium in the environment of the Czech Republic and then compare it with Damodaran [1]. Methods applicable in the Czech Republic and Damodaran methods are used, then these methods are compared. For Czech as well as foreign investors, the easiest way to obtain a risk premium is to use the company’s investment rating. In the case of determining the risk premium of the Czech Republic, the easiest method is the CRP (country risk premiums) model. If the country’s market does not have a long history or does not have such a developed capital market, it is recommended to apply data from the US capital market. However, there are significant differences in the economy between Europe and the USA, so the data of an European country such as Germany, which has historical risk premium calculations, should be used.

scholarly journals SUKUK AND BONDS IN INDONESIA: AN OVERVIEW

2021 ◽  
Vol 3 (2) ◽  
pp. 101-118
Author(s):  
Doli Witro ◽  
Iwan Setiawan
Keyword(s):  
Qualitative Research ◽  
Content Analysis ◽  
20Th Century ◽  
Capital Market ◽  
Financial Crises ◽  
Profit Sharing ◽  
Islamic Finance ◽  
Late 20Th Century ◽  
Financial Products ◽  
The Difference

From the early 1920s to the late 20th century, there were at least 25 financial crises globally. In 2018, the Global Islamic Finance Report reported that Indonesia has tremendous potential to develop Islamic finance. Some of the Islamic financial products that can be developed in Indonesia are bonds and sukuk. Bonds are a product of the capital market. In its development, bonds have undergone relatively rapid innovation, which provides room for issuing Islamic bonds known as sukuk. This paper discusses the difference between sukuk and bonds. This paper aims to look at the differences between sukuk and bonds and the opportunities for issuance, application, and development of sukuk in Indonesia. This research is qualitative research that is literature. As for obtaining comprehensive results, this study uses two approaches consisting of a socio-historical approach and content analysis. The analysis results show that sukuk are in principle the same as bonds, with the main differences, among others, in the use of the concept of return and profit-sharing as a substitute for interest. Keywords: Sukuk; Bond; Sharia Bonds; Capital market; Indonesia

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