Proposal on debt for climate adaptation swaps: a strategy for growth and economic transformation of Caribbean economies

ECLAC advocates that the Caribbean’s high debt dilemma was not principally driven by policy missteps, or the international financial crisis. Rather, it finds its roots in external shocks, compounded by the inherent structural weaknesses and vulnerabilities confronting Caribbean SIDS and their limited capacity to respond. A major factor has been the underperformance of the export sector, partly due to a decline in competitiveness and a slowdown in economic activity especially among the tourism-dependent economies. Caribbean countries have also accumulated debt as a consequence of increased expenditures to address the impact of extreme events and climate change attendant difficulties. Most Caribbean countries are located in the hurricane belt and are also prone to earthquakes and other hazards. Indeed, a disaster resulting in damage and losses in excess of 5 per cent of GDP can be expected to hit any Caribbean country every few years. Moreover, over the period 2000-2014, it is estimated that the economic cost of natural disasters in Caribbean countries was in excess of US$30.7 billion. The English Speaking Caribbean countries are extremely vulnerable to natural disasters.

Analyse de l’écart bancaire sur les éléments hors-bilan : cas des swaps de taux d'intérêt

La recherche qui a été effectuée dans le présent document, porte sur l'écart appliqué par les banques aux swaps de taux d'intérêt. Les éléments hors-bilan des banques dont fait partie les swaps de taux d'intérêt ont connu ces dernières années une croissance très importante, à cause principalement d'une volatilité des taux d'intérêt élevée. Nous avons choisi d'analyser l'écart bancaire sur les swaps de taux d'intérêt dans le but d'identifier la nature des relations qui existent entre lui et certains facteurs pertinents. Étant donné que dans la littérature financière il n'y a aucune étude empirique relative à ce sujet, et qu'il y a un manque d'informations théoriques adéquates en ce qui concerne la forme des relations analysées, nous avons effectué ce travail dans une perspective exploratoire. Les facteurs pertinents retenus sont le taux des acceptations bancaires, la volatilité de ce taux, mesurée par l'écart-type des observations des trente derniers jours, la pente de la courbe de rendement, et l'échéance du swap. La période d'étude va du 17/02/89 au 11/02/91 et compte 493 observations; elle a été subdivisée en quatre sous-périodes chronologiques égales. Ainsi chacune des analyses a-t-elle été effectuée de deux façons ; d'abord sur l'ensemble de l'échantillon et ensuite dans les sous-périodes. Deux types de swaps ont été considérés : les swaps de trois ans d'échéance et les swaps de cinq ans d'échéance. Les résultats de l'analyse des données sont les suivants : Dans une large mesure, il est plausible d'affirmer que l'écart bancaire sur les swaps de taux d'intérêt est une fonction négative du taux des acceptations bancaires. Mais cette relation est plus évidente lorsque le taux des acceptations bancaires est élevé que lorsqu'il est plus faible. Il est également soutenable d'affirmer que l'écart bancaire est une fonction positive de la volatilité des taux d'intérêt ainsi que de la pente de la courbe de rendement. L'écart bancaire augmente avec une augmentation de l'échéance du swap; néanmoins la relation entre les deux n'est pas une relation linéaire, c'est-à-dire de proportionnalité. Les résultats obtenus sont en général concordants avec la théorie économique et financière et leurs implications pratiques peuvent être utiles aussi bien pour la banque que pour les entreprises clientes.

The EU ban on uncovered sovereign credit default swaps: assessing impacts on liquidity, volatility and price discovery

This article addresses the effects of the prohibition against naked CDS buying implemented by the European Union in November 2012. Three aspects of market quality are analyzed: liquidity, volatility, and price informativeness. Overall, our results suggest that the ban produced negative effects on liquidity and price informativeness. First, we find that in territories within the scope of the EU regulation, the bid–ask spreads on sovereign CDS contracts rose after the ban, but fell for countries outside its bounds. Open interest declined for both groups of CDS reference entities in our sample, but significantly more in the constraint group. Price delay increased more prominently for countries affected by the ban, whereas price precision decreased for these countries while increasing for CDSs written on other sovereign reference entities. Most notably, our findings indicate that hese negative effects were more pronounced amid reference entities exhibiting lower credit risk. With respect to volatility, the evidence suggests that the ban was successful in stabilizing the CDS market in that volatility decreased, particularly for contracts written on riskier CDS entities.

Early relational reasoning and the novice programmer : swapping as the “hello world” of relational reasoning

We report on a longitudinal research study of the development of novice programmers in their first semester of programming. In the third week, almost half of our sample of students could not answer an explain-in-plain-English question, for code consisting of just three assignment statements, which swapped the values in two variables. We regard code that swaps the values of two variables as the simplest case of where a programming student can manifest a SOLO relational response. Our results demonstrate that the problems many students face with understanding code can begin very early, on relatively trivial code. However, using traditional programming exercises, these problems often go undetected until late in the semester. New approaches are required to detect and fix these problems earlier.

The Stitchery collective : fashion in an expanded field

This practice-based presentation explores the role of fashion as an agent for social inclusion and ethical design practice in communities. The Stitchery Collective is an artist-run initiative based in Brisbane, Australia. Operating at the intersection of craft and design, the fashion-based initiative challenges the assumption that fashion is designed, produced and consumed exclusively in the commercial sector. As a not-for-profit cooperative, the stitchery collective is the first and only fashion organisation in Australia to attract funding under the national and state artist-run-initiative scheme. The collective approach extends to the stitchery design practice, facilitated by individual practitioners working within the organisation who devise programs in the context of collaborative and socially engaged design. Working under the banner of a question, Can fashion be more than pretty clothes for pretty people? the stitchery works to extend the cultural field of fashion practice in the 21st century. The premise of dress as a ‘significant creative or cultural expression’ has informed the expanded definition of fashion practice, as adopted by the stitchery. This alternative classification has fostered partnerships with numerous community groups, including those marginalised in the contemporary fashion context such as recent migrants and refugees. Community engagement programs span design, sewing and up-cycling workshops, sustainability lectures, clothing swaps and public education seminars, supported by partnerships with various cultural, government and educational institutions. In 2011, the stitchery travelled to the Venice Biennale’s 3rd International Children’s Carnival, hosting a workshop series and installation to promote design for sustainability. The proven potential for design to connect community members has motivated the stitchery to question the opportunity for fashion practice to, perhaps uncharacteristically, operate under the banner of ‘design for social good’. Acknowledging craft and design as relational fields, this presentation expands fashion as a tool for social innovation and sustainable practice. The stitchery dislocates the consumer status of fashion with small-scale, localised projects; moving beyond fashion as a dictum of social class to an alternative model that is accessible, conscious, flexible, connected and sustainable. As an undefined post-industrial future approaches, the non-commercial status of the stitchery practice might work to present an image of the active post-consumer. How can the stitchery propose a resilient model of design for the future?

Comparative analysis of FimB and FimE recombinase activity

FimB and FimE are site-specific recombinases, part of the λ integrase family, and invert a 314 bp DNA switch that controls the expression of type 1 fimbriae in Escherichia coli. FimB and FimE differ in their activity towards the fim switch, with FimB catalysing inversion in both directions in comparison to the higher-frequency but unidirectional on-to-off recombination catalysed by FimE. Previous work has demonstrated that FimB, but not FimE, recombination is completely inhibited in vitro and in vivo by a regulator, PapB, expressed from a distinct fimbrial locus. The aim of this work was to investigate differences between FimB and FimE activity by exploiting the differential inhibition demonstrated by PapB. The research focused on genetic changes to the fim switch that alter recombinase binding and its structural context. FimB and FimE still recombined a switch in which the majority of fimS DNA was replaced with a larger region of non-fim DNA. This demonstrated a minimal requirement for FimB and FimE recombination of the Fim binding sites and associated inverted repeats. With the original leucine-responsive regulatory protein (Lrp) and integration host factor (IHF)-dependent structure removed, PapB was now able to inhibit both recombinases. The relative affinities of FimB and FimE were determined for the four ‘half sites’. This analysis, along with the effect of extensive swaps and duplications of the half sites on recombination frequency, demonstrated that FimB recruitment and therefore subsequent activity was dependent on a single half site and its context, whereas FimE recombination was less stringent, being able to interact initially with two half sites with equally high affinity. While increasing FimB recombination frequencies failed to overcome PapB repression, mutations made in recombinase binding sites resulted in inhibition of FimE recombination by PapB. Overall, the data support a model in which the recombinases differ in loading order and co-operative interactions. PapB exploits this difference and FimE becomes susceptible when its normal loading is restricted or changed.

Three essays on banks trading activities

With a fair share of the blame for the subprime crisis pointing to banks' extensive involvement in trading, this thesis examines three closely related issues. The first essay shows that regulatory capital arbitrage, insolvency risk, and non-interest income are all important motivations for banks to become involved in trading. The second essay support the widely held perception that trading activities such as off-balance sheet derivatives, securitization, and assets sales all are making banks more opaque. With banks' business model changing from ''originate and hold'' to ''originate, repackage, and sell'', the last essay show that trading channel exist and it has weakened the effectiveness of monetary policy transmission through banks' capital and lending channel.

La gestión de Fondos de Inversión en Activos de Renta Fija

[ES]En el presente trabajo analizamos la evolución de la inversión colectiva en Estados Unidos y Gran Bretaña, países que son el inicio de la misma, y su posterior nacimiento y desarrollo en España, para centrarnos exclusivamente en los Fondos de Inversión de Renta Fija. En la segunda parte, estudiamos la gestión de carteras de renta fija y su posible aplicación a la gestión de carteras de Fondos de Inversión, incorporando las posibilidades que ofrecen los productos financieros derivados. Finalizamos el trabajo con un análisis empírico sobre el comportamiento de los FIM de Renta Fija en España, con el objeto de contrastar cómo es realmente la gestión de Fondos en nuestro país.

Autobiografia de ficção como matéria de historicidade em João do Rio e em João Gilberto Noll

A análise de arquivos jornalísticos para a formação do conceito de historicidade em torno das obras Memórias de um rato de hotel (1912), de João do Rio, e Bandoleiros (1985), de João Gilberto Noll, foi a nossa primeira contribuição para a formação do objeto autobiografia de ficção, ou autoficção, como também denominamos. A partir desses arquivos de memórias, relativos a dois contextos finisseculares, o XIX e o XX respectivamente, pudemos compreender a historicidade como matriz do nosso objeto autoficção, permeada pelo que Foucault chama de efetividade cotidiana. Essa efetividade do cotidiano é costurada pelo fio da oralidade, que se refere ao elenco das atividades humanas no todo social, tendo como principal característica a ação comunicativa entre os sujeitos. Assim, ligamos a oralidade à historicidade em duas perspectivas complementares: os ditos e os escritos. A primeira diz respeito aos processos da comunicação humana e suas trocas simbólicas, que são projetadas na cultura: os ditos. A segunda se refere ao produto das representações literais do sujeito, grafadas no dorso impresso da memória: os escritos. A memória é a chave de acesso à escrita do si, que se distingue do que chamamos de autoficção, porque nessa última prevalecem as experiências do tempo presente para o futuro. Memórias de um rato de hotel é a escrita de um Eu-autor, contando do cárcere as suas experiências de gatuno no contexto da belle époque carioca. Por meio da memória, ele reconstrói o contexto finissecular, enfatizando a degradação urbana e a decadência ética da burguesia em ascensão, nos tempos da recém-inaugurada República. Na autoficção Bandoleiros, temos o relato vertiginoso de um Eu-narrador, contando do seus fracassos literários e conjugais. Ele é um escritor decadente, transitando nos espaços degradados da pós-modernidade, retirando dessa perambulação o material vivo de seu livro Sol macabro. Nessa autoficção, Noll registra as impressões sobre a realidade dos 1980, focalizando as subjetividades agônicas à margem do capitalismo tardio, num trânsito indômito entre Porto Alegre, Rio de Janeiro e os Estados Unidos. Na nossa tese, compreendemos a realidade como a matéria plástica da autobiografia de ficção. A experiência mundana do escritor é também forte aliada na composição de uma estética subjetiva, ou subjestética, que está para além do auto-retrato narcísico da autobiografia, em suas formas tradicionais

Comparative analysis of corporate risk management practices in Croatian and Slovenian companies

The paper explores differences as well as commonalities in corporate risk management practices and risk exposures in the large non-financial Slovenian and Croatian companies. Comparative analysis of survey results have revealed that the majority of analysed companies in both Croatia and Slovenia are using some form of risk management to manage interest-rate, foreign exchange, or commodity price risk. Regarding the intensity of influence of financial risks on the performance of the analysed companies, the results have shown that the price risk has the highest influence among the Slovenian as well as the Croatian companies. Croatian companies are more affected by currency risk than the Slovenian companies, while the interest-rate risk has been ranged as less important in comparison with commodity price and currency risks. The survey’s results have clearly indicated that Croatian and Slovenian non-financial companies manage financial risks primarily with simple risk management instruments such as natural hedging. In the case of derivatives use, forwards and swaps are by far the most important instruments in both countries, but futures as representatives of standardised derivatives and structured derivatives are more important in the Slovenian than in the Croatian companies.

Elucidating the molecular physiopathology of acute respiratory distress syndrome in severe acute respiratory syndrome patients

Acute respiratory distress syndrome (ARDS) is a severe form of acute lung injury. It is a response to various diseases of variable etiology, including SARS-CoV infection. To date, a comprehensive study of the genomic physiopathology of ARDS (and SARS) is lacking, primarily due to the difficulty of finding suitable materials to study the disease process at a tissue level (instead of blood, sputa or swaps). Hereby we attempt to provide such study by analyzing autopsy lung samples from patient who died of SARS and showed different degrees of severity of the pulmonary involvement. We performed real-time quantitative PCR analysis of 107 genes with functional roles in inflammation, coagulation, fibrosis and apoptosis: some key genes were confirmed at a protein expression level by immunohistochemistry and correlated to the degree of morphological severity present in the individual samples analyzed. Significant expression levels were identified for ANPEP (a receptor for CoV), as well as inhibition of the STAT1 pathway, IFNs production and CXCL10 (a T-cell recruiter). Other genes unassociated to date with ARDS/SARS include C1Qb, C5R1, CASP3, CASP9, CD14, CD68, FGF7, HLA-DRA, ICF1, IRF3, MALAT-1, MSR1, NFIL3, SLPI, USP33, CLC, GBP1 and TACI. As a result, we proposed to therapeutically target some of these genes with compounds such as ANPEP inhibitors, SLPI and dexamethasone. Ultimately, this study may serve as a model for future, tissue-based analyses of fibroinflammatory conditions affecting the lung. (C) 2009 Elsevier B.V. All rights reserved.

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 Diffusion of Risks in Public Private Partnership Contracts

Purpose The UK government argues that the benefits of public private partnership (PPP) in delivering public infrastructure stem from: transferring risks to the private sector within a structure in which financiers put their own capital at risk; and, the performance based payment mechanism, reinforced by the due diligence requirements imposed by the lenders financing the projects (HM Treasury, 2010). Prior studies of risk in PPPs have investigated ‘what’ risks are allocated and to ‘whom’, that is to the public or the private sector. The purpose of this study is to examine ‘how’ and ‘why’ PPP risks are diffused by their financiers. Design/methodology/approach This study focuses on the financial structure of PPPs and on their financiers. Empirical evidence comes from interviews conducted with equity and debt financiers. Findings The findings show that the financial structure of the deals generates risk aversion in both debt and equity financiers and that the need to attract affordable finance leads to risk diffusion through a network of companies using various means that include contractual mitigation through insurance, performance support guarantees, interest rate swaps and inflation hedges. Because of the complexity this process generates, both procurers and suppliers need expensive expert advice. The risk aversion and diffusion and the consequent need for advice add cost to the projects impacting on the government’s economic argument for risk transfer. Limitations and implications The empirical work covers the private finance initiative (PFI) type of PPP arrangements and therefore the risk diffusion mechanisms may not be generalisable to other forms of PPP, especially those that do not involve the use of high leverage or private finance. Moreover, the scope of this research is limited to exploring the diffusion of risk in the private sector. Further research is needed on how risk is diffused in other settings and on the value for money implication of risk diffusion in PPP contracts. Originality/value The expectation inherent in PPP is that the private sector will better manage those risks allocated to it and because private capital is at risk, financiers will perform due diligence with the ultimate outcome that only viable projects will proceed. This paper presents empirical evidence that raises questions about these expectations. Key words: public private partnership, risk management, diffusion, private finance initiative, financiers