Liquidity Hoarding and Interbank Market Spreads: The Role of Counterparty Risk

We study the functioning and possible breakdown of the interbank market due to asymmetric information about counterparty risk. We allow for privately observed shocks to the distribution of asset risk across banks after the initial portfolio of liquid and illiquid investments is chosen. Our model generates sev- eral interbank market regimes: 1) low interest rate spread and full participation; 2) elevated spread and adverse selection; and 3) liquidity hoarding leading to a market breakdown. The regimes are in line with observed developments in the interbank market before and during the 2007-09 financial crisis. We use the model to examine various policy responses.Financial crisis;Interbank market;Liquidity;Asymmetric in- formation

Liquidity Hoarding and Interbank Market Spreads:The Role of Counterparty Risk

We study the functioning and possible breakdown of the interbank market due to asymmetric information about counterparty risk. We allow for privately observed shocks to the distribution of asset risk across banks after the initial portfolio of liquid and illiquid investments is chosen. Our model generates sev- eral interbank market regimes: 1) low interest rate spread and full participation; 2) elevated spread and adverse selection; and 3) liquidity hoarding leading to a market breakdown. The regimes are in line with observed developments in the interbank market before and during the 2007-09 financial crisis. We use the model to examine various policy responses

Kleinere Altenglische Dichtungen.

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Radiative Symmetry Breaking of the Minimal Left-Right Symmetric Model

Under the assumption of classical conformal invariance, we study the Coleman-Weinberg symmetry breaking mechanism in the minimal left-right symmetric model. This model is attractive as it provides a natural framework for small neutrino masses and the restoration of parity as a good symmetry of nature. We find that, in a large fraction of the parameter space, the parity symmetry is maximally broken by quantum corrections in the Coleman-Weinberg potential, which are a consequence of the conformal anomaly. As the left-right symmetry breaking scale is connected to the Planck scale through the logarithmic running of the dimensionless couplings of the scalar potential, a large separation of the two scales can be dynamically generated. The symmetry breaking dynamics of the model was studied using a renormalization group analysis. Electroweak symmetry breaking is triggered by the breakdown of left-right symmetry, and the left-right breaking scale is therefore expected in the few TeV range. The phenomenological implications of the symmetry breaking mechanism are discussed.Comment: 23 pages, 1 figure; version as published in journal; title changed, changes in abstract, introduction and conclusion

A disilene base adduct with a dative Si–Si single bond.

An experimental and theoretical study of the base- stabilized disilene 1 is reported, whichforms at lowtemper- atures in the disproportionation reaction of Si 2 Cl 6 or neo- Si 5 Cl 12 with equimolar amounts of NMe 2 Et. Single-crystal X- ray diffraction and quantum-chemical bonding analysis dis- close an unprecedented structure in silicon chemistry featuring adative Si!Si single bond between two silylene moieties, Me 2 EtN!SiCl 2 !Si(SiCl 3 ) 2 .The central ambiphilic SiCl 2 group is linked by dative bonds to the amine donor and the bis(trichlorosilyl)silylene acceptor,which leads to push–pull stabilization. Based on experimental and theoretical examina- tions aformation mechanism is presented that involves an autocatalytic reaction of the intermediately formed anion Si(SiCl 3 ) 3 ¢ with neo-Si 5 Cl 12 to yield 1

Can Variation in Hypothalamic-Pituitary-Adrenal (HPA)-Axis Activity Explain the Relationship between Depression and Cognition in Bipolar Patients?

Background: Dysregulation of the hypothalamic-pituitary-adrenal (HPA) axis is thought to be associated with more mood symptoms and worse cognitive functioning. This study examined whether variation in HPA axis activity underlies the association between mood symptoms and cognitive functioning. Methodology/Principal Findings: In 65 bipolar patients cognitive functioning was measured in domains of psychomotor speed, speed of information processing, attentional switching, verbal memory, visual memory, executive functioning and an overall mean score. Severity of depression was assessed by the Inventory of Depressive Symptomatology-self rating version. Saliva cortisol measurements were performed to calculate HPA axis indicators: cortisol awakening response, diurnal slope, the evening cortisol level and the cortisol suppression on the dexamethasone suppression test. Regression analyses of depressive symptoms and cognitive functioning on each HPA axis indicator were performed. In addition we calculated percentages explanation of the association between depressive symptoms and cognition by HPA axis indicators. Depressive symptoms were associated with dysfunction in psychomotor speed, attentional switching and the mean score, as well as with attenuation in diurnal slope value. No association was found between HPA axis activity and cognitive functioning and HPA axis activity did not explain the associations between depressive symptoms and cognition. Conclusions/Significance: As our study is the first one in this field specific for bipolar patients and changes in HPA-axis activity did not seem to explain the association between severity of depressive symptoms and cognitive functioning in bipolar patients, future studies are needed to evaluate other factors that might explain this relationship

An Optimal Execution Problem with Market Impact

We study an optimal execution problem in a continuous-time market model that considers market impact. We formulate the problem as a stochastic control problem and investigate properties of the corresponding value function. We find that right-continuity at the time origin is associated with the strength of market impact for large sales, otherwise the value function is continuous. Moreover, we show the semi-group property (Bellman principle) and characterise the value function as a viscosity solution of the corresponding Hamilton-Jacobi-Bellman equation. We introduce some examples where the forms of the optimal strategies change completely, depending on the amount of the trader's security holdings and where optimal strategies in the Black-Scholes type market with nonlinear market impact are not block liquidation but gradual liquidation, even when the trader is risk-neutral.Comment: 36 pages, 8 figures, a modified version of the article "An optimal execution problem with market impact" in Finance and Stochastics (2014

Higgs mass implications on the stability of the electroweak vacuum

We update instability and metastability bounds of the Standard Model electroweak vacuum in view of the recent ATLAS and CMS Higgs results. For a Higgs mass in the range 124--126 GeV, and for the current central values of the top mass and strong coupling constant, the Higgs potential develops an instability around $10^{11}$ GeV, with a lifetime much longer than the age of the Universe. However, taking into account theoretical and experimental errors, stability up to the Planck scale cannot be excluded. Stability at finite temperature implies an upper bound on the reheat temperature after inflation, which depends critically on the precise values of the Higgs and top masses. A Higgs mass in the range 124--126 GeV is compatible with very high values of the reheating temperature, without conflict with mechanisms of baryogenesis such as leptogenesis. We derive an upper bound on the mass of heavy right-handed neutrinos by requiring that their Yukawa couplings do not destabilize the Higgs potential.Comment: 14 pages, 8 figure

The 3-3-1 model with S_4 flavor symmetry

We construct a 3-3-1 model based on family symmetry S_4 responsible for the neutrino and quark masses. The tribimaximal neutrino mixing and the diagonal quark mixing have been obtained. The new lepton charge \mathcal{L} related to the ordinary lepton charge L and a SU(3) charge by L=2/\sqrt{3} T_8+\mathcal{L} and the lepton parity P_l=(-)^L known as a residual symmetry of L have been introduced which provide insights in this kind of model. The expected vacuum alignments resulting in potential minimization can origin from appropriate violation terms of S_4 and \mathcal{L}. The smallness of seesaw contributions can be explained from the existence of such terms too. If P_l is not broken by the vacuum values of the scalar fields, there is no mixing between the exotic and the ordinary quarks at the tree level.Comment: 20 pages, revised versio

Three-loop \beta-functions for top-Yukawa and the Higgs self-interaction in the Standard Model

We analytically compute the dominant contributions to the \beta-functions for the top-Yukawa coupling, the strong coupling and the Higgs self-coupling as well as the anomalous dimensions of the scalar, gluon and quark fields in the unbroken phase of the Standard Model at three-loop level. These are mainly the QCD and top-Yukawa corrections. The contributions from the Higgs self-interaction which are negligible for the running of the top-Yukawa and the strong coupling but important for the running of the Higgs self-coupling are also evaluated.Comment: 22 pages, 7 figures. Few extra citations are added; the plots are improved. Results in computer readable form can be retrieved from http://www-ttp.particle.uni-karlsruhe.de/Progdata/ttp12/ttp12-012