Three Essays in Empirical Asset Pricing

The financial crisis of 2007-2008 led to extraordinary government intervention in firms and markets. The scope and depth of government action rivaled that of the Great Depression. Many traded markets experienced dramatic declines in liquidity leading to the existence of conditions normally assumed to be promptly removed via the actions of profit seeking arbitrageurs. These extreme events motivate the three essays in this work. The first essay seeks and fails to find evidence of investor behavior consistent with the broad 'Too Big To Fail' policies enacted during the crisis by government agents. Only in limited circumstances, where government guarantees such as deposit insurance or U.S. Treasury lending lines already existed, did investors impart a premium to the debt security prices of firms under stress. The second essay introduces the Inflation Indexed Swap Basis (IIS Basis) in examining the large differences between cash and derivative markets based upon future U.S. inflation as measured by the Consumer Price Index (CPI). It reports the consistent positive value of this measure as well as the very large positive values it reached in the fourth quarter of 2008 after Lehman Brothers went bankrupt. It concludes that the IIS Basis continues to exist due to limitations in market liquidity and hedging alternatives. The third essay explores the methodology of performing debt based event studies utilizing credit default swaps (CDS). It provides practical implementation advice to researchers to address limited source data and/or small target firm sample size.

La narrativa en La Ilustración (1849-1857): la «Serie B» del Semanario Pintoresco Español

En los ocho años de vida de La Ilustración, la narrativa, larga y breve, fue uno de los elementos fundamentales de este periódico ilustrado. El artículo analiza los relatos que allí aparecieron y los efectos que las necesidades industriales y comerciales tuvieron en una revista que luchaba por sobrevivir económicamente. Ángel Fernández de los Ríos, propietario del Semanario Pintoresco Español y de La Ilustración, convirtió a esta última, en lo que toca a la narrativa, en una especie de serie B, en la que se entremezclaban reediciones, traducciones y colaboraciones que no habían llegado a tener el nivel suficiente para llegar a las páginas del Semanario Pintoresco Español. La abundancia de reediciones y las diversas fuentes de las que proceden hacen ver que en su selección fue más importante la imperiosa necesidad de sacar la publicación a la calle cada quince días que otros criterios. Ello también explica la abundancia de traducciones de novelas y cuentos en las páginas de La Ilustración. Traducciones y reediciones son el cuerpo principal de la narrativa publicada en La Ilustración y si tenemos que detenernos en las obras de más calidad que allí aparecen, será en este tipo de relatos, puesto que los textos narrativos originales, muy a menudo publicados sin firma de autor, resultan de muy escaso interés. Solo podemos contra con la excepción de dos relatos de José Güell y Renté (Anacaona y Quibiam) y uno de Gertrudis Gómez de Avellaneda: La baronesa de Joux. No representa, pues, La Ilustración una fuente de importancia para la narración española del medio siglo. Su posición subordinada al Semanario Pintoresco Español impidió que la publicación desarrollara una línea de narraciones de calidad. Es testimonio, sin embargo, de un proceso de industrialización de la labor periodística y literaria que estaba desarrollándose con gran celeridad si tenemos en cuenta el fracaso de El Artista y del No me olvides apenas quince años antes. A la altura del medio siglo el periodismo literario se había convertido en una industria que exigía ingentes esfuerzos de trabajo y una producción torrencial.

Effect of superstructure stiffness on liquefaction-induced failure Mechanisms

Soil liquefaction following strong earthquakes causes extensive damage to civil engineering structures. Foundations of buildings, bridges etc can suffer excessive rotation/settlement due to liquefaction. Many of the recent earthquakes bear testimony for such damage. In this article a hypothesis that "Superstructure stiffness can determine the type of liquefaction-induced failure mechanism suffered by the foundations" is proposed. As a rider to this hypothesis, it will be argued that liquefaction will cause failure of a foundation system in a mode of failure that offers least resistance. Evidence will be offered in terms of field observations during the 921 Ji-Ji earthquake in 1999 in Taiwan and Bhuj earthquake of 2001 in India. Dynamic centrifuge test data and finite element analyses results are presented to illustrate the traditional failure mechanisms. Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited.

An overview on how failure analysis contributes to flight safety in the Portuguese Air Force

Failure analysis has been, throughout the years, a fundamental tool used in the aerospace sector, supporting assessments performed by sustainment and design engineers mainly related to failure modes and material suitability. The predicted service life of aircrafts often exceeds 40 years, and the design assured life rarely accounts for all in service loads and in service environmental menaces that aging aircrafts must deal with throughout their service lives. From the most conservative safe-life conceptual design approaches to the most recent on-condition based design approaches, assessing the condition and predicting the failure modes of components and materials are essential for the development of adequate preventive and corrective maintenance actions as well as for the accomplishment and optimization of scheduled maintenance programs of aircrafts. Moreover, as the operational conditions of aircrafts may vary significantly from operator to operator (especially in military aircraft), it is necessary to access if the defined maintenance programs are adequate to guarantee the continuous reliability and safe usage of the aircrafts, preventing catastrophic failures which bear significant maintenance and repair costs, and that may lead to the loss of human lives. Thus being, failure analysis and material investigations performed as part of aircraft accidents and incidents investigations arise as powerful tools of the utmost importance for safety assurance and cost reduction within the aeronautical and aerospace sectors. The Portuguese Air Force (PRTAF) has operated different aircrafts throughout its long existence, and in some cases, has operated a particular type of aircraft for more than 30 years, gathering a great amount of expertise in: assessing failure modes of the aircrafts materials; conducting aircrafts accidents and incidents investigations (sometimes with the participation of the aircraft manufacturers and/or other operators); and in the development of design and repair solutions for in-service related problems. This paper addresses several studies to support the thesis that failure analysis plays a key role in flight safety improvement within the PRTAF. It presents a short summary of developed