Fund Management and Systemic Risk - Lessons from the Global Financial Crisis

Fund managers play an important role in increasing efficiency and stability in financial markets. But research also indicates that fund management in certain circumstances may contribute to the buildup of systemic risk and severity of financial crises. The global financial crisis provided a number of new experiences on the contribution of fund managers to systemic risk. In this article, we focus on these lessons from the crisis. We distinguish between three sources of systemic risk in the financial system that may arise from fund management: insufficient credit risk transfer to fund managers; runs on funds that cause sudden reductions in funding to banks and other financial entities; and contagion through business ties between fund managers and their sponsors. Our discussion relates to the current intense debate on the role the so-called shadow banking system played in the global financial crisis. Several regulatory initiatives have been launched or suggested to reduce the systemic risk arising from non-bank financial entities, and we briefly discuss the likely impact of these on the sources of systemic risk outlined in the article

Do Harmonised Accounting Standards Lead to Harmonised

The objective of this paper is to investigate the level of harmonisation for IAS 39 Financial Instruments: Recognition and Measurement and to identify if different levels of harmonisation are associated with company-specific factors. Based on Rahman et al. (2002), we used the Jaccard (JACC) index to determine the level of harmonisation between IAS 39 and the financial reporting practice of a broad-based sample of European-listed companies in 2005.We applied regression analysis to identify companies’ specific characteristics that affect the level of convergence of the reporting practice of financial instruments. The results of this study show a high level of harmonisation between accounting practices of European companies included in our sample and IAS 39

Experimental momentum spectra of identified hadrons at e+e−e^+e^- colliders compared to QCD calculations

Experimental data on the shape of hadronic momentum spectra are compared to theoretical predictions in the context of calculations in the Modified Leading Log Approximation (MLLA), under the assumption of Local Parton Hadron Duality (LPHD). Considered are experimental measurements at $e^+e^-$-colliders of $\xi_p^*$, the position of the maximum in the distribution of $\xi_p=\log(1/x_p)$, where $x_p=p/p_{beam}$. The parameter $\xi_p^*$ is determined for various hadrons at various centre of mass energies. The dependence on the hadron type poses some interesting questions about the process of hadron-formation. The dependence of $\xi^*_p$ on the centre of mass energy is seen to be described adequately by perturbation theory. A quantitative check of LPHD + MLLA is possible by extracting a value of $\alpha_s$ from an overall fit to the scaling behaviour of $\xi^*_p$.Comment: 9 pages latex, 7 eps figures and total ps fil

INTEGRAL and RXTE Observations of Centaurus A

INTEGRAL and RXTE performed three simultaneous observations of the nearby radio galaxy Centaurus A in 2003 March, 2004 January, and 2004 February with the goals of investigating the geometry and emission processes via the spectral/temporal variability of the X-ray/low energy gamma ray flux, and intercalibration of the INTEGRAL instruments with respect to those on RXTE. Cen A was detected by both sets of instruments from 3-240 keV. When combined with earlier archival RXTE results, we find the power law continuum flux and the line-of-sight column depth varied independently by 60% between 2000 January and 2003 March. Including the three archival RXTE observations, the iron line flux was essentially unchanging, and from this we conclude that the iron line emitting material is distant from the site of the continuum emission, and that the origin of the iron line flux is still an open question. Taking X-ray spectral measurements from satellite missions since 1970 into account, we discover a variability in the column depth between 1.0 x 10{sup 23} cm{sup -2} and 1.5 x 10{sup 23} cm{sup -2} separated by approximately 20 years, and suggest that variations in the edge of a warped accretion disk viewed nearly edge-on might be the cause. The INTEGRAL OSA 4.2 calibration of JEM-X, ISGRI, and SPI yields power law indices consistent with the RXTE PCA and HEXTE values, but the indices derived from ISGRI alone are about 0.2 greater. Significant systematics are the limiting factor for INTEGRAL spectral parameter determination