"Convertible Bond Underpricing: Renegotiable Covenants, Seasoning and Convergence"

We investigate the long-standing puzzle on the underpricings of convertible bonds. We hypothesize that the observed underpricing is induced by the possibility that a convertible bond might renegotiate on some of its covenants, e.g., an imbedded put option, in financial difficulties. Consistent with our hypothesis, we find that the initial underpricing is larger for lower rated bonds. The underpricing worsens if the issuer experiences subsequent financial difficulties. However, conditional on no rating downgrades, our main empirical result shows that convertible bond prices do converge to their theoretical prices within two years. This seasoning period is shorter for higher rated convertible bonds.

Convertible Bond Underpricing: Renegotiable Covenants, Seasoning and Convergence (Published in "Management Science", Vol. 53, No. 11, November 2007, pp. 1793.1814. )

We investigate the long-standing puzzle on the underpricings of convertible bonds. We hypothesize that the observed underpricing is induced by the possibility that a convertible bond might renegotiate on some of its covenants, e.g., an imbedded put option, in financial difficulties. Consistent with our hypothesis, we find that the initial underpricing is larger for lower rated bonds. The underpricing worsens if the issuer experiences subsequent financial difficulties. However, conditional on no rating downgrades, our main empirical result shows that convertible bond prices do converge to their theoretical prices within two years. This seasoning period is shorter for higher rated convertible bonds.

The Effect of Education on Life Satisfaction Across Countries

The study of life satisfaction of diverse countries is becoming increasingly important. Studies have shown that people who are satisfied with their lives are positive about other aspects of their lives such as their health. So it is important to examine the factors that can lead to life satisfaction. This study examines the relationships between education and life satisfaction across countries. Thirty-five countries are included in the study; the results show that life satisfaction is higher in countries where people have more education. Years of education are predicted by enrollment rates at the secondary and tertiary levels. Based on the findings of this study, educators and policy-makers should encourage people to continue their education.L’étude de la satisfaction de vivre dans divers pays prend de l’importance. La recherche a déjà indiqué que ceux qui sont satisfaits de leur vie sont également plus positifs face à d’autres aspects de leur vie comme leur santé. Il est donc important d’étudier les facteurs qui entraînent la satisfaction de vivre. Ce projet porte sur le rapport entre l’éducation et la satisfaction de vivre dans trente-cinq pays. Les résultats indiquent que la satisfaction de vivre est plus élevée dans les pays présentant des taux de scolarité plus élevés. Les années de scolarité sont évaluées en fonction des taux d’inscription aux niveaux secondaire et tertiaire. Les résultats de cette étude poussent les auteurs à recommander que les enseignants et les décideurs encouragent les gens à poursuivre leur éducation

Convertible Bond Underpricing : Renegotiable Covenants, Seasoning and Convergence

We investigate the long-standing puzzle on the underpricings of convertible bonds. We hypothesize that the observed underpricing is induced by the possibility that a convertible bond might renegotiate on some of its covenants, e.g., an imbedded put option, in financial difficulties. Consistent with our hypothesis, we find that the initial underpricing is larger for lower rated bonds. The underpricing worsens if the issuer experiences subsequent financial difficulties. However, conditional on no rating downgrades, our main empirical result shows that convertible bond prices do converge to their theoretical prices within two years. This seasoning period is shorter for higher rated convertible bonds

Pdgf-ab and 5-Azacytidine induce conversion of somatic cells into tissue-regenerative multipotent stem cells

Current approaches in tissue engineering are geared toward generating tissue-specific stem cells. Given the complexity and heterogeneity of tissues, this approach has its limitations. An alternate approach is to induce terminally differentiated cells to dedifferentiate into multipotent proliferative cells with the capacity to regenerate all components of a damaged tissue, a phenomenon used by salamanders to regenerate limbs. 5-Azacytidine (AZA) is a nucleoside analog that is used to treat preleukemic and leukemic blood disorders. AZA is also known to induce cell plasticity. We hypothesized that AZA-induced cell plasticity occurs via a transient multipotent cell state and that concomitant exposure to a receptive growth factor might result in the expansion of a plastic and proliferative population of cells. To this end, we treated lineagecommitted cells with AZA and screened a number of different growth factors with known activity in mesenchyme-derived tissues. Here, we report that transient treatment with AZA in combination with platelet-derived growth factor-AB converts primary somatic cells into tissue-regenerative multipotent stem (iMS) cells. iMS cells possess a distinct transcriptome, are immunosuppressive, and demonstrate long-term self-renewal, serial clonogenicity, and multigerm layer differentiation potential. Importantly, unlike mesenchymal stem cells, iMS cells contribute directly to in vivo tissue regeneration in a context-dependent manner and, unlike embryonic or pluripotent stem cells, do not form teratomas. Taken together, this vector-free method of generating iMS cells from primary terminally differentiated cells has significant scope for application in tissue regeneration.Link_to_subscribed_fulltex