Household investments in structured financial products: pulled or pushed?

Session 175 - Crisis: Individual InvestorsStructured financial products including credit-linked notes and collateralized debt obligations were popular before the credit crisis but then delivered substantial loss to investors. Driver for investment decision in those products is key to understanding the fundamental causes of the crisis. Classical portfolio theory suggests that investors would shun away from unfamiliar financial products. This familiarity bias holds especially for unsophisticated household investors. The rapid growth of structured products market, the newest financial innovations, presents an opportune setting to test such conventional wisdoms. Using unique household investment data from Hong Kong, we show that product distributors' selling intensity is an important determinant for investors' allocation in structured products. On the other hand, more financially literate investors, who are more capable of optimizing asset allocation, include less structured products into their portfolios. Important determinants according to mean-variance analysis, such as product premium, have little explanatory power to investor's allocation decisions. Our finding suggests that investments in structured products prior to the credit crisis were more likely to be pulled by distributors. This paper demonstrates the importance of financial literacy for investment decisions.postprintThe 2010 Annual Meeting of the Financial Management Association (FMA), New York, N.Y., 20-23 October 2010

Household investments in structured financial products: pulled or pushed?

Why did individual investors buy structured financial products? Were they too greedy to consider the risk involved? Or did the banks lure them to buy? Using unique household investment data from Hong Kong, we show that investor demand of such products (the ‘push’ effect) was not the key driver. Important determinants according to portfolio theories, such as product premium, have little explanatory power to investor's actual allocation decisions. More financially literate investors who can form reasonable expectations about stocks bought less. Education, IQ, and relationship with the distributing banks are statistically significant explanatory variables. However, we can only explain one-fifth of the cross-sectional variations of investment in structured products. The rest could be due to bounded rational investor behaviors and mis-selling by distributors.postprintThe 17th Conference on the Theories and Practices of Securities and Financial Markets, Kaohsiung, Taiwan, 11-12 December 2009

Identification of SNP-containing regulatory motifs in the myelodysplastic syndromes model using SNP arrays ad gene expression arrays

Myelodysplastic syndromes have increased in frequency and incidence in the American population, but patient prognosis has not significantly improved over the last decade. Such improvements could be realized if biomarkers for accurate diagnosis and prognostic stratification were successfully identified. In this study, we propose a method that associates two state-of-the-art array technologies-single nucleotide polymor-phism (SNP) array and gene expression array-with gene motifs considered transcription factor-binding sites (TFBS). We are particularly interested in SNP-containing motifs introduced by genetic variation and mutation as TFBS. The potential regulation of SNP-containing motifs affects only when certain mutations occur. These motifs can be identified from a group of co-expressed genes with copy number variation. Then, we used a sliding window to identify motif candidates near SNPs on gene sequences. The candidates were filtered by coarse thresholding and fine statistical testing. Using the regression. based LARS-EN algorithm and a level. wise sequence combination procedure, we identified 28 SNP-containing motifs as candidate TFBS. We confirmed 21 of the 28 motifs with ChIP-chip fragments in the TRANSFAC database. Another six motifs were validated by TRANSFAC via searching binding fragments on co-regulated genes. The identified motifs and their location genes can be considered potential biomarkers for myelodysplastic syndromes. Thus, our proposed method, a novel strategy for associating two data categories, is capable of integrating information from different sources to identify reliable candidate regulatory SNP-containing motifs introduced by genetic variation and mutation

Management of chest keloids

Keloid formation is one of the most challenging clinical problems in wound healing. With increasing frequency of open heart surgery, chest keloid formations are not infrequent in the clinical practice. The numerous treatment methods including surgical excision, intralesional steroid injection, radiation therapy, laser therapy, silicone gel sheeting, and pressure therapy underscore how little is understood about keloids. Keloids have a tendency to recur after surgical excision as a single treatment. Stretching tension is clearly associated with keloid generation, as keloids tend to occur on high tension sites such as chest region. The authors treated 58 chest keloid patients with surgical excision followed by intraoperative and postoperative intralesional steroid injection. Even with minor complications and recurrences, our protocol results in excellent outcomes in cases of chest keloids

Kinetic roughening of ion-sputtered Pd(001) surface: Beyond the Kuramoto-Sivashinsky model

The kinetic roughening of Ar+ ion-sputtered Pd(001) surface was investigated. The facet formation on the sputtered surface was studied by tracing the extradiffraction peaks or satellites around the diffraction peaks corresponding to the sample surface. The morphological evolution of the sputtered Pd(001) surface was also investigated by an scanning tunneling microscopy (STM). It was shown that the nanoscale adatom islands form and grow with increasing sputter time.open313

Asia-Pacific consensus statement on the optimal use of high-sensitivity troponin assays in acute coronary syndromes diagnosis: focus on hs-TnI

published_or_final_versio

Theoretical calculations on vibrational frequencies and absorption spectra of S-1 and S-2 states of pyridine

Three harmonic potential-energy surfaces of (1)A(1), B-1(1), and B-1(2) singlet states of pyridine have been obtained by using ab initio method. Geometric properties and force fields of these states have been determined with the complete-active-space self-consistent-field (CASSCF) theoretical method. Vibrational frequencies of two excited states have been assigned on the basis of the potential energy distribution from normal mode analysis. The resulting properties are used to simulate the experimental absorption spectrum. From the spectral simulation the totally symmetric vibrations with large Huang-Rhys factors have been identified as nu(12) and nu(6a) modes in the B-1(1) state; nu(1) and nu(12) modes in the B-1(2) state, indicating that these modes have strong vibronic coupling between ground and excited states

Magnetic Fluffy Dark Matter

We explore extensions of inelastic Dark Matter and Magnetic inelastic Dark Matter where the WIMP can scatter to a tower of heavier states. We assume a WIMP mass $m_\chi \sim \mathcal{O}(1-100)$ GeV and a constant splitting between successive states $\delta \sim\mathcal{O}(1 - 100)$ keV. For the spin-independent scattering scenario we find that the direct experiments CDMS and XENON strongly constrain most of the DAMA/LIBRA preferred parameter space, while for WIMPs that interact with nuclei via their magnetic moment a region of parameter space corresponding to $m_{\chi}\sim 11$ GeV and $\delta < 15$ keV is allowed by all the present direct detection constraints.Comment: 16 pages, 6 figures, added comments about magnetic moment form factor to Sec 3.1.2 and results to Sec 3.2.2, final version to be published in JHE