Induced Gravity on Intersecting Branes

We establish Einstein-Hilbert gravity couplings in the effective action for Intersecting Brane Worlds. The four-dimensional induced Planck mass is determined by calculating graviton scattering amplitudes at one-loop in the string perturbation expansion. We derive a general formula linking the induced Planck mass for N=1 supersymmetric backgrounds directly to the string partition function. We carry out the computation explicitly for simple examples, obtaining analytic expressions.Comment: references added, minor changes to discussion of path integral normalization on page

JOINT DISTRIBUTIONS OF PORTFOLIO LOSSES AND EXOTIC PORTFOLIO PRODUCTS

The pricing of exotic portfolio products, e.g. path-dependent CDO tranches, relies on the joint probability distribution of portfolio losses at different time horizons. We discuss a range of methods to construct the joint distribution in a way that is consistent with market prices of vanilla CDO tranches. As an example, we show how our loss-linking methods provide estimates for the breakeven spreads of forward-starting tranches. .CDOs, correlation modelling, path-dependent portfolio derivatives