Related papers: Why Long-Term Debt Instruments Cannot Be Deposit S…

The law of maturity is the belief that less-observed events are becoming mature and, therefore, more likely to occur in the future. Previous studies have shown that the assumption of infinite exchangeability contradicts the law of maturity.…

The Consumer Financial Protection Bureau defines the notion of payoff amount as the amount that has to be payed at a particular time in order to completely pay off the debt, in case the lender intends to pay off the loan early, way before…

We consider a two-factor model for the valuation of a non callable defaultable bond which pays coupons at certain given dates. The model under consideration is the Jump to Default Constant Elasticity of Variance (JDCEV) model. The JDCEV…

Technical debt is a metaphor that describes the long term effects of shortcuts taken in software development activities to achieve near term goals. In this study, we explore a new context of technical debt that relates to database…

Context: Technical Debt (TD) can be paid back either by those that incurred it or by others. We call the former self-fixed TD, and it can be particularly effective, as developers are experts in their own code and are well-suited to fix the…

As the Securities and Exchange Commission(SEC) has implemented a new regulation on short-sellings, short-sellers are required to repurchase stocks once the clearing risk rises to a certain level. Avellaneda and Lipkin proposed a fully…

This paper investigates both short and long-run interaction between BIST-100 index and CDS prices over January 2008 to May 2015 using ARDL technique. The paper documents several findings. First, ARDL analysis shows that 1 TL increase in CDS…

Debt recycling is an aggressive equity extraction strategy that potentially permits faster repayment of a mortgage. While equity progressively builds up as the mortgage is repaid monthly, mortgage holders may obtain another loan they could…

Technical debt refers to taking shortcuts to achieve short-term goals, which might negatively influence software maintenance in the long-term. There is increasing attention on technical debt that is admitted by developers in source code…

In this paper, we deal with an axiomatic approach to default risk. We introduce the notion of a default risk measure, which generalizes the classical probability of default (PD), and allows to incorporate model risk in various forms. We…

Many emerging Web services, such as email, photo sharing, and web site archives, need to preserve large amounts of quickly-accessible data indefinitely into the future. In this paper, we make the case that these applications' demands on…

In this paper, we present the Tokenized Sovereign Debt Conversion Mechanism (TSDCM), a smart-contracted instrument that, upon meeting both debt-to-GDP and GDP-growth thresholds, automates the retirement of sovereign debt. TSDCM initiates…

This paper discusses some unusual consequences raised by the definition of the conformable derivative in the lower terminal. A replacement for this definition is proposed and statements adjusted to the new definition are presented.

Investors in Target Date Funds are automatically switched from high risk to low risk assets as their retirements approach. Such funds have become very popular, but our analysis brings into question the rationale for them. Based on both a…

One stylized feature of financial volatility impacting the modeling process is long memory. This paper examines long memory for alternative risk measures, observed absolute and squared returns for Daily REITs and compares the findings for a…

To be practical, semiconductors need to be doped. Sometimes, to nearly degenerate levels, e.g. in applications such as thermoelectric, transparent electronics or power electronics. However, many materials with finite band gaps are not…

We discuss the problem of facilitating tax auditing assuming "programmable money", i.e., digital monetary instruments that are managed by an underlying distributed ledger. We explore how a taxation authority can verify the declared returns…

Compound interest as well as inflation grows exponentially with time, whereas other means to repay debt grow polynomially. For this and other, mostly political, reasons, debt without inflation is unsustainable. We suggest a discontinuous…

Arora, Barak, Brunnermeier, and Ge showed that taking computational complexity into account, a dishonest seller could strategically place lemons in financial derivatives to make them substantially less valuable to buyers. We show that if…

Motivation: Technical debt is a metaphor that describes not-quite-right code introduced for short-term needs. Developers are aware of it and admit it in source code comments, which is called Self- Admitted Technical Debt (SATD). Therefore,…