The effect of stock market and commodity prices on structural credit risk measures of oil companies

This paper studied the extent the idiosyncrasies of some expected default probability (EDP) measures can be explained by the idiosyncrasies of the returns on market index, industry index and commodity prices. Standard & Poor’s 500 (S&P 500), Chicago Board Options Exchange (CBOE)’s OIX index and crude oil prices, OILBRNP, were selected as the market indicators. The Crude Petroleum and Natural Gas Extraction industry of SICCODE 1311 was studied in this paper, totaling to 178 companies. The credit models used were: Merton, Longstaff and Schwartz and Leland and Toft models. We found that, within the idiosyncrasies, the market and industry indices explained the Longstaff and Schwartz EDP measures better than the other measures. Furthermore, the commodity prices explained the Leland and Toft EDP measures better than the other measures. We construed that the EDP measures could be differentiated by the effects of market indices and commodity prices. We further suggested a structural explanation to this result.BUSINES

Frail Line

Frail Line is a story about the changed dynamics of a father-daughter relationship after a separation of many years. The daughter is a hair dresser with long hair, she cuts her hair after the breakup with her boyfriend. Disillusioned with romantic love, the daughter seeks solace and escape in the company of her father, a male figure who has re-entered her life. Together, they question the value of human connections in the face of the capriousness of feelings. The climax of the story comes when in their vulnerability, the pair crosses the line of a father-daughter relationship, and a human being’s instinctive need to be needed and desired by another is brought to light. The seemingly familial reunion eventually leads to a different kind of bond. How will they struggle to redefine their changing relationships? Frail Line is told in a magic-realistic style and from a female point of view, it is a new exploration of familial ties in Singapore. It also explores the disenchantment with interpersonal relationships that youths face and what they do the stem the pain when relief seems elusive…Bachelor of Fine Art