Benchmark Status in Fixed-Income Asset Markets

What is a benchmark bond? We provide a formal theoretical treatment of this concept that relates endogenously determined benchmark status to the location of price discovery and we derive its implications. We describe a rich but little used econometric technique for identifying the benchmark that is congruent with our theoretical framework. We apply this in the context of the US corporate bond market and to the natural experiment that occurred when benchmark status was contested in the European sovereign bond markets after the introduction of the Euro. We show that France provides the benchmark at most maturities in the Euro-denominated sovereign bond market and that IBM provides the benchmark in the 10 year maturity in the US corporate bond market.

Transparency Proposals for European Sovereign Bond Markets

The debate over the possible extension of transparency regulation in Europe to include sovereign bonds has opened up a number of other issues in need of serious consideration. One such issue is the appropriateness of the entire infrastructure supporting the trading of European sovereign bonds. In recent years sovereign issuers have supported the development of an electronic inter-dealer market but have remained unconcerned with the opacity of dealer-to-customer trading. The degree of segmentation in this market is high relative to what exists in nearly all other financial markets. This paper explores why European sovereign bond markets have developed in such a segmented way and considers how this structure could be altered to improve transparency without adversely affecting liquidity, efficiency or the benefits enjoyed by primary dealers and issuers. It is suggested that the structure of the market could be improved greatly if the largest and most active investors were permitted access to the inter-dealer electronic trading platforms. This would solve a number of market imperfections and increase the proportion of market activity that is conducted in a transparent way. The paper argues that sovereign issuers in Europe have the means to provide incentives that would influence dealers to support reduced segmentation. Some practical examples of how this could be achieved are provided and the potential benefits are outlined.

Familial genes in sporadic disease: Common variants of a-Synuclein gene associate with Parkinson’s disease

Genetic variation of the alpha-synuclein gene (SNCA) is known to cause familial parkinsonism, however the role of SNCA variants in sporadic Parkinson's disease (PD) remains elusive. The present study identifies an association of common SNCA polymorphisms with disease susceptibility in a series of Irish PD patients. There is evidence for association with alternate regions, of protection and risk which may act independently/synergistically, within the promoter region (Rep1; OR: 0.59, 95% CI: 0.37-0.84) and the 3'UTR of the gene (rs356165; OR: 1.67, 95% CI: 1.08-2.58). Given previous reports of association a collaborative effort is required which may exploit global linkage disequilibrium patterns for SNCA and standardise polymorphic markers used in each population. It is now crucial to identify the susceptibility allele and elucidate its functionality which may generate a therapeutic target for PD.

Comparative seasonal acclimatization of food and energy consumption in adjacent populations of common spiny mice (Acomys cahirinus)

Animals inhabiting environments with low productivity and food availability commonly have reduced energy demands and increased digestive efficiencies. The dry matter intake (DMI), apparent digestible dry matter (ADDM), digestible efficiency (DE) and digestible energy intake (DEI) of two populations of common spiny mouse Acomys cahirinus were compared during both winter and summer under conditions of simulated water stress. Mice were captured from the north- and south-facing slopes (NFS and SFS) of the same canyon that represent mesic and xeric habitats, respectively. Measured variables were also compared between F-1 mice that had been born to either NFS or SFS mice, and raised in the laboratory. SFS mice were able to assimilate energy more efficiently than NFS mice during the summer. By comparison, NFS mice were able to assimilate more energy during the winter. During winter, NFS mice assimilated more energy at low levels of water stress, whereas SFS mice assimilated more energy at higher levels. Differences were also apparent in F-1 mice. It is therefore suggested that local climatic conditions can impose physiological adaptations that are retained in succeeding generations, creating unique meta-populations.

Seasonal acclimatization of non-shivering thermogenesis in common spiny mice (Acomys cahirinus) from different habitats

We compared non-shivering thermogenesis between two adjacent populations of freshly captured common spiny mice (Acomys cahirinus) during both winter and summer. Mice were captured from north- and south-facing slopes (NFS and SFS) of the same valley that represent 'Mediterranean' and 'Desert' habitats, respectively. Oxygen consumption and body temperature responses to an injection of exogenous noradrenaline (NA) were higher during the winter than during the summer. in addition, SFS mice had a lower body temperature response to NA during the summer than the other groups of mice. This suggests that heat dissipation is likely to have been greatest in SFS mice during the summer. Overall this study shows that seasonal acclimatization of NST mechanisms is an important trait for small mammals that inhabit the Mediterranean ecosystem. Differences in physiological capabilities can occur temporally within populations across seasons, and spatially between populations that are only a short distance (200-500 m) apart.

Differential osmoregulatory capabilities of common spiny mice (Acomys cahirinus) from adjacent microhabitats

The osmoregulatory function of common spiny mice Acomys cahirinus living on opposite slopes of the lower Nahal Oren ('Evolution Canyon') on mount Carmel, Israel, was investigated by increasing the salinity of the water source whilst maintaining a high-protein diet. The southern-facing slope (SFS) of this canyon differs from the northern-facing slope (NFS) as it receives considerably more solar radiation and consequently forms a more xeric, sparsely vegetated habitat. During the summer, mice living on the two opposite slopes significantly differed in their urine osmolality, which also increased significantly as dietary salinity increased. Offspring of wild-captured mice, born in captivity, and examined during the winter, continued to show a difference in osmoregulatory function depending on the slope of origin. However, they differed from wild-captured mice, as they did not respond to the increase in dietary salinity by increasing the concentration of their urine, but rather by increasing the volume of urine produced. This study shows that A. cahirinus occupying different microhabitats may exhibit differences in their ability to concentrate urine and thus in their ability to withstand xeric conditions. We suggest that they may also differ genetically, as offspring from the NFS and SFS retain physiological differences, but further studies will be needed to confirm this hypothesis.

Differential energy costs of winter acclimatized common spiny mice Acomys cahirinus from two adjacent habitats

The common spiny mouse Acomys cahirinus, of Ethiopian origin, has a widespread distribution across arid, semi-arid and Mediterranean parts of the Arabian sub-region. We compared the daily energy expenditure (DEE), water turnover NTTO) and sustained metabolic scope (SusMS = DEE/resting metabolic rate) of two adjacent populations during the winter. Mice were captured from North- and South- facing slopes (NFS and SFS) of the same valley, comprising mesic and xeric habitats, respectively. Both DEE and SusMS winter values were greater in NFS than SFS mice and were significantly greater than values previously measured in the summer for these two populations in the same environments. However, WTO values were consistent with previously established values and were not significantly different from allometric predictions for desert eutherians. We suggest that physiological plasticity in energy expenditure, which exists both temporally and spatially, combined with stable WTO, perhaps reflecting a xeric ancestry, has enabled A. cahirinus to invade a wide range of habitats. (C) 2003 Elsevier Inc. All rights reserved.

Non-shivering thermogenesis in common spiny mice Acomys cahirinus from adjacent habitats: response to seasonal acclimatization and salinity acclimation

1. We compared resting metabolic rate (RMR) and non-shivering thermogenesis (NST) values between founder and F1-populations of winter-acclimatized Acomys cahirinus that originated from north- and south-facing slopes (NFS and SFS) of the same valley, representing mesic and xeric habitats. 2. NST was measured by the increase in oxygen consumption (VO2) and body temperature (T-b) after a noradrenaline (NA) injection (VO2 NA, TbNA). 3. Body mass and TbNA values were higher in SFS F1-mice, while RMR and VO2 NA values were higher in NFS F1-mice. Differences were not apparent in founders. 4. Results are consistent with NFS and SFS mice being considered as

Energetics and water economy of common spiny mice Acomys cahirinus from north- and south-facing slopes of a Mediterranean valley

1. A comparison was made of the daily energy expenditure (DEE), resting metabolic rate (RMR) and water turnover (WTO) of two populations of Common Spiny Mice Acomys cahirinus from north- and south-facing slopes (NFS and SFS) of the same valley, which represented 'Mediterranean' and 'desert' habitats, respectively.