Unfunded pension liabilities and sponsoring firm credit risk: an international analysis of corporate bond spreads

This paper tests empirically whether pension information derived by corporate pension accounting disclosures is priced in corporate bond spreads. The model represents a hybrid of more traditional accounting ratio-based models of credit risk and structural models of bond spreads initiated by Merton (1974). The model is fitted to 5 years of data from 2002 to 2006 featuring companies from the US and Europe. The paper finds that while unfunded pension liabilities are priced in the overall sample, they are not priced as aggressively as traditional leverage. Furthermore, an extended model shows that the pension–credit risk relation is most evident in the US and Germany, where unfunded pension liabilities are priced more aggressively than traditional forms of leverage. No pension–credit risk relation is found in the other countries sampled, notably the UK, Netherlands and France.

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.

Progenitors of Core-Collapse Supernovae

Knowledge of the progenitors of core-collapse supernovae is a fundamental component in understanding the explosions. The recent progress in finding such stars is reviewed. The minimum initial mass that can produce a supernova (SN) has converged to 8 +/- 1 M-circle dot from direct detections of red supergiant progenitors of II-P SNe and the most massive white dwarf progenitors, although this value is model dependent. It appears that most type Ibc SNe arise from moderate mass interacting binaries. The highly energetic, broad-lined Ic SNe are likely produced by massive, Wolf-Rayet progenitors. There is some evidence to suggest that the majority of massive stars above similar to 20 M-circle dot may collapse quietly to black holes and that the explosions remain undetected. The recent discovery of a class of ultrabright type H SNe and the direct detection of some progenitor stars bearing luminous blue variable characteristics suggest some very massive stars do produce highly energetic explosions. The physical mechanism is under debate, and these SNe pose a challenge to stellar evolutionary theory.

Core-collapse supernovae in low-metallicity environments and future all-sky transient surveys

Aims. Massive stars in low-metallicity environments may produce exotic explosions such as long-duration gamma-ray bursts and pair-instability supernovae when they die as core-collapse supernovae (CCSNe). Such events are predicted to be relatively common in the early Universe during the first episodes of star-formation. To understand these distant explosions it is vital to study nearby CCSNe arising in low-metallicity environments to determine if the explosions have different characteristics to those studied locally in high-metallicity galaxies. Many of the nearby supernova searches concentrate their efforts on high star-formation rate galaxies, hence biasing the discoveries to metal rich regimes. Here we determine the feasibility of searching for these CCSNe in metal-poor dwarf galaxies using various survey strategies.

Hubble Space Telescope imaging of the progenitor sites of six nearby core-collapse supernovae

The search for the progenitors of six core-collapse supernovae (CCSNe) in archival Hubble Space Telescope (HST) WFPC2 pre-explosion imaging is presented. These SNe are 1999an, 1999br, 1999ev, 2000ds, 2000ew and 2001B. Post-explosion imaging of the SNe, with the HST ACS/WFC, has been utilized with the technique of differential astrometry to identify the progenitor locations on the pre-explosion imaging. SNe 1999br, 1999ev, 2000ew and 2001B are recovered in late-time imaging, and estimates of the progenitor locations on the pre-explosion imaging, with subpixel accuracy, have been made. Only the progenitor of the Type II-P SN 1999ev has been recovered, on pre-explosion F555W imaging, at a 4.8 sigma significance level. Assuming a red supergiant progenitor, the pre-explosion observation is consistent with M-ZAMS = 15-18 M-circle dot. The progenitors of the other five SNe were below the 3 sigma detection threshold of the pre-explosion observations. The detection thresholds were translated to mass limits for the progenitors by comparison with stellar evolution models. Pre-explosion observations of the peculiarly faint SN 1999br limit the mass of a red supergiant progenitor to M-ZAMS

A comparison between star formation rate diagnostics and rate of core collapse supernovae within 11 Mpc

Aims. The core collapse supernova rate provides a strong lower limit for the star formation rate (SFR). Progress in using it as a cosmic SFR tracer requires some confidence that it is consistent with more conventional SFR diagnostics in the nearby Universe. This paper compares standard SFR measurements based on H alpha, far ultraviolet (FUV) and total infrared (TIR) galaxy luminosities with the observed core collapse supernova rate in the same galaxy sample. The comparison can be viewed from two perspectives. Firstly, by adopting an estimate of the minimum stellar mass to produce a core collapse supernova one can determine a SFR from supernova numbers. Secondly, the radiative SFR can be assumed to be robust and then the supernova statistics provide a constrain on the minimum stellar mass for core collapse supernova progenitors.