Unfunded Pension Liabilities and the Corporate CDS Market

This article examines the impact of pension deficits on default risk as measured by the premia on corporate credit default swaps (CDS). We find highly significant evidence that unfunded pension liabilities raise one- and five-year CDS premia. However, this relation is not homogeneous across countries, with the U.S. CDS market leading its European counterparts in the pricing of defined-benefit pension risk.

The Financial Accountability of Irish Credit Unions: an initial empirical study

Credit unions are member-owned, voluntary, self-help, democratic, not-for-profit institutions that provide financial services to their members. They have both economic and social goals. Over this last decade they have achieved remarkable growth levels and currently there are 600 such organisations in Ireland, with approximately 50 per cent of the adult population of Ireland belonging to a credit union. Accounting for credit unions is a much-neglected area and relatively little is known about the sector's accountability. This paper presents the results of an initial empirical study of the financial accountability of Irish credit unions. A series of interviews and a basic content analysis of 178 recent financial statements were used to identify the views of key stakeholders with respect to the discharge of financial accountability by credit unions and the current quality of financial reporting. Overall, the research points to a sector where financial accountability through the medium of the annual report is weak and possible adverse consequences of this are explored. On the basis of the interviews it is suggested that if changes in financial accountability are to be achieved then some more proactive engagement of parties external to the management of individual credit unions is needed.

RHESSI and SOHO CDS Observations of Explosive Chromospheric Evaporation

Simultaneous observations of explosive chromospheric evaporation are presented using data from the Reuven Ramaty High-Energy Solar Spectroscopic Imager (RHESSI) and the Coronal Diagnostic Spectrometer (CDS) on board the Solar and Heliospheric Observatory. For the first time, cospatial imaging and spectroscopy have been used to observe explosive evaporation within a hard X-ray emitting region. RHESSI X-ray images and spectra were used to determine the flux of nonthermal electrons accelerated during the impulsive phase of an M2.2 flare. When we assumed a thick-target model, the injected electron spectrum was found to have a spectral index of similar to 7.3, a low-energy cutoff of similar to 20 keV, and a resulting flux of >= 4 x10(10) ergs cm(-2) s(-1). The dynamic response of the atmosphere was determined using CDS spectra; we found a mean upflow velocity of 230 +/- 38 km s(-1) in Fe (XIX) (592.23 angstrom) and associated downflows of 36 +/- 16 and 43 +/- 22 km s(-1) at chromospheric and transition region temperatures, respectively, relative to an averaged quiet- Sun spectra. The errors represent a 1 j dispersion. The properties of the accelerated electron spectrum and the corresponding evaporative velocities were found to be consistent with the predictions of theory.

An Investigation into the Link between UK Credit Union Characterisitics, Location and their Success

The unique characteristics of credit unions reduces the information asymmetry that is prevalent in credit making decisions, enabling them to provide loans where other financial institutions cannot. This makes them a potential tool in the fight against financial exclusion. Yet, the UK credit union movement is not regarded as being successful, even though there is evidence of much financial exclusion. This study is cross sectional in form, and evaluates characteristics that may contribute to the success of the UK credit union movement at national and regional level, in 2000. The findings are used to consider the impact of recent regulatory changes on the movement. The key findings are that there is a significant relationship between the success of a credit union, its size and the deprivation of the ward from which it sources its members. More specifically, larger credit unions and those located in more affluent wards, are more successful. Affiliation to the Irish League of Credit Unions and having a common bond of occupation, are also found to be contributing factors to credit union success. These results are taken as providing support for the recent changes implemented by the Financial Services Authority (FSA), which is likely to result in the emergence of larger credit unions (through mergers), run by appropriately qualified persons, serving a more mixed-income membership base. It is, however, noted that the history of the UK movement is one of missed opportunities and only time will tell whether credit unions have the wherewithal to accept current opportunities.