Permanent trading impacts and bond yields

We analyze four years of transaction data for euro-area sovereign bonds traded on the MTS electronic platforms. In order to measure the informational content of trading activity, we estimate the permanent price response to trades. We find not only strong evidence of information asymmetry in sovereign bond markets, but we also show the relevance of information asymmetry in explaining the cross-sectional variations of bond yields across a wide range of bond maturities and countries. Our results confirm that trades of more recently issued bonds and longer maturity bonds have a greater permanent effect on prices. We compare the price impact of trades for bonds across different maturity categories and find that trades of French and German bonds have the highest long-term price impact in the short maturity class whereas trades of German bonds have the highest permanent price impacts in the long maturity class. More importantly, we study the cross-section of bond yields and find that after controlling for conventional factors, investors demand higher yields for bonds with larger permanent trading impact. Interestingly, when investors face increased market uncertainty, they require even higher compensation for information asymmetry.

Improvement of link failure restoration utilising multi-protocol label switching (MPLS) as a means to maintain quality of service (QOS)

This paper proposes a practical approach to the enhancement of Quality of Service (QoS) routing by means of providing alternative or repair paths in the event of a breakage of a working path. The proposed scheme guarantees that every Protected Node (PN) is connected to a multi-repair path such that no further failure or breakage of single or double repair paths can cause any simultaneous loss of connectivity between an ingress node and an egress node. Links to be protected in an MPLS network are predefined and a Label Switched path (LSP) request involves the establishment of a working path. The use of multi-protection paths permits the formation of numerous protection paths allowing greater flexibility. Our analysis examined several methods including single, double and multi-repair routes and the prioritization of signals along the protected paths to improve the Quality of Service (QoS), throughput, reduce the cost of the protection path placement, delay, congestion and collision. Results obtained indicated that creating multi-repair paths and prioritizing packets reduces delay and increases throughput in which case the delays at the ingress/egress LSPs were low compared to when the signals had not been classified. Therefore the proposed scheme provided a means to improve the QoS in path restoration in MPLS using available network resources. Prioritizing the packets in the data plane has revealed that the amount of traffic transmitted using a medium and low priority Label Switch Paths (LSPs) does not have any impact on the explicit rate of the high priority LSP in which case the problem of a knock-on effect is eliminated.

Limiting factors in the restoration of UK grassland beetle assemblages

Grasslands restoration is a key management tool contributing to the long-term maintenance of insect populations, providing functional connectivity and mitigating against extinction debt across landscapes. As knowledge of grassland insect communities is limited, the lag between the initiation of restoration and the ability of these new habitats to contribute to such processes is unclear. Using ten data sets, ranging from 3 to 14 years, we investigate the lag between restoration and the establishment of phytophagous beetle assemblages typical of species rich grasslands. We used traits and ecological characteristics to determine factors limiting beetle colonisation, and also considered how food-web structure changed during restoration. For sites where seed addition of host-plants occurred the success in replicating beetle assemblages increased over time following a negative exponential function. Extrapolation beyond the existing data set tentatively suggested that success would plateau after 20 years, representing a c. 60% increase in assemblage similarity to target grasslands. In the absence of seed addition, similarity to the target grasslands showed no increase over time. Where seed addition was used the connectance of plant-herbivore food webs decreased over time, approaching values typical of species rich grasslands after c. 7 years. This trend was, however, dependent on the inclusion of a single site containing data in excess of 6 years of restoration management. Beetles not capable of flight, those showing high degrees of host-plant specialisation and species feeding on nationally rare host plants take between 1 and 3 years longer to colonise. Successful grassland restoration is underpinned by the establishment of host-plants, although individual species traits compound the effects of poor host-plant establishment to slow colonisation. The use of pro-active grassland restoration to mitigate against future environmental change should account for lag periods in excess of 10 years if the value of these habitats is to be fully realised.

Restoring species-rich grassland: principles and techniques

Grassland restoration is the dominant activity funded by agri-environment schemes (AES). However, the re-instatement of biodiversity and ecosystem services is limited by a number of severe abiotic and biotic constraints resulting from previous agricultural management. These appear to be less severe on ex-arable sites compared with permanent grassland. We report findings of a large research programme into practical solutions to these constraints. The key abiotic constraint was high residual soil fertility, particularly phosphorus. This can most easily be addressed by targeting of sites of low nutrient status. The chief biotic constraints were lack of propagules of desirable species and suitable sites for their establishment. Addition of seed mixtures or green hay to gaps created by either mechanical disturbance or herbicide was the most effective means of overcoming these factors. Finally, manipulation of biotic interactions, including hemiparasitic plants to reduce competition from grasses and control of mollusc herbivory of sown species, significantly improved the effectiveness of these techniques.

Plant-soil interactions and grassland diversity restoration

Restoration schemes aimed at enhancing plant species diversity of improved agricultural grassland have been a key feature of agri-environmental policy since the mid 1980s. Allied to this has been much research aimed at providing policy makers with guidelines on how best to manage grassland to restore botanical diversity. This research includes long-term studies of the consequences for grassland diversity of management techniques such as different hay cut dates, fertiliser additions, seed introductions and grazing regimes. Studies have also explored the role of introductions of Rhinanthus minor into species-poor swards to debilitate competitive grasses. While these studies have been successful in identifying some management features that control plant species diversity in agricultural grassland, they have taken a largely aboveground perspective on plant community dynamics.

Limiting factors in the restoration of grassland insects

Grasslands restoration is a key management tool contributing to the long-term maintenance of insect populations, providing functional connectivity and mitigating against extinction debt across landscapes. As knowledge of grassland insect communities is limited, the lag between the initiation of restoration and the ability of these new habitats to contribute to the successful enhancement of native biodiversity is unclear. Using two long term data sets, we investigate differences in successional trajectories during the establishment of butterfly (11 years) and phytophagous beetle (13 years) communities during the recreation of calcareous grassland. Overall restoration success was higher for the butterflies than the beetles. However, both shared a general pattern of rapidly increasing restoration success over the first five years, awhich approached an asymptote after c. 10 years. The use of pro-active grassland restoration to mitigate against future environmental change therefore needs to account for such time lag if the value of these habitats is to be fully realised.

Identifying time lags in the restoration of grassland butterfly communities: a multi-site assessment

Although grasslands are crucial habitats for European butterflies, large-scale declines in quality and area have devastated many species. Grassland restoration can contribute to the recovery of butterfly populations, although there is a paucity of information on the long-term effects of management. Using eight UK data sets (9-21 years), we investigate changes in restoration success for (1) arable reversion sites, were grassland was established on bare ground using seed mixtures, and (2) grassland enhancement sites, where degraded grasslands are restored by scrub removal followed by the re-instigation of cutting/grazing. We also assessed the importance of individual butterfly traits and ecological characteristics in determining colonisation times. Consistent increases in restoration success over time were seen for arable reversion sites, with the most rapid rates of increase in restoration success seen over the first 10 years. For grasslands enhancement there were no consistent increases in restoration success over time. Butterfly colonisation times were fastest for species with widespread host plants or where host plants established well during restoration. Low mobility butterfly species took longer to colonise. We show that arable reversion is an effective tool for the management of butterfly communities. We suggest that as restoration takes time to achieve, its use as a mitigation tool against future environmental change (i.e. by decreasing isolation in fragmented landscapes) needs to take into account such time lags.