Market Size and Investment Performance of Defaulted Bonds and Bank Loans: 1987-2002

The defaulted and distressed, public and private debt markets in the United States increased enormously to a record $942 billion (face value) at the end of 2002. The market value of this increasingly attractive alternative investment segment was approximately$512 billion. Defaulted securities performed below average in 2002; absolute returns, as measured by our various defaulted debt indexes, were - 6.0% on bonds, +3.0% on bank loans, and - 0.5% on the combined defaulted public bonds and private bank loans index. The Altman-NYU Salomon Center Index of Defaulted Bonds grew to a face value of $61.5 billion. The market-to-face value ratio of the Bond Index fell to 0.17 from 0.21 one year ago. The face value of our Defaulted Bank Loan Index was$37.7 billion and the market-to-face value ratio dropped to a record low level of 0.46 by the end of 2002. The recovery rate on defaulted bonds (price just after default) was very low at 25 cents on the dollar; likewise, the weighted average bank loan recovery rate in 2002 dropped to 52 cents on the dollar. With new defaulted bonds rising in 2002 to a record $96.9 billion (default rate of 12.8%) and the default outlook for 2003 high, but lower than for 2002, investment opportunities should abound in the distressed debt market. Indications are that distressed investors (both old and new entities) are successfully raising funds because investor expectations are buoyant

Market Size and Investment Performance of Defaulted Bonds and Bank Loans: 1987-2002

# The defaulted and distressed, public and private debt markets in the United States increased enormously to a record $942 billion (face value) at the end of 2002. The market value of this increasingly attractive alternative investment segment was approximately$512 billion. # Defaulted securities performed below average in 2002; absolute returns, as measured by our various defaulted debt indexes, were - 6.0% on bonds, +3.0% on bank loans, and - 0.5% on the combined defaulted public bonds and private bank loans index. The Altman-NYU Salomon Center Index of Defaulted Bonds grew to a face value of $61.5 billion. The market-to-face value ratio of the Bond Index fell to 0.17 from 0.21 one year ago. The face value of our Defaulted Bank Loan Index was$37.7 billion and the market-to-face value ratio dropped to a record low level of 0.46 by the end of 2002. # The recovery rate on defaulted bonds (price just after default) was very low at 25 cents on the dollar; likewise, the weighted average bank loan recovery rate in 2002 dropped to 52 cents on the dollar. With new defaulted bonds rising in 2002 to a record $96.9 billion (default rate of 12.8%) and the default outlook for 2003 high, but lower than for 2002, investment opportunities should abound in the distressed debt market. # Indications are that distressed investors (both old and new entities) are successfully raising funds because investor expectations are buoyant

Detailed balance in Horava-Lifshitz gravity

We study Horava-Lifshitz gravity in the presence of a scalar field. When the detailed balance condition is implemented, a new term in the gravitational sector is added in order to maintain ultraviolet stability. The four-dimensional theory is of a scalar-tensor type with a positive cosmological constant and gravity is nonminimally coupled with the scalar and its gradient terms. The scalar field has a double-well potential and, if required to play the role of the inflation, can produce a scale-invariant spectrum. The total action is rather complicated and there is no analog of the Einstein frame where Lorentz invariance is recovered in the infrared. For these reasons it may be necessary to abandon detailed balance. We comment on open problems and future directions in anisotropic critical models of gravity.Comment: 10 pages. v2: discussion expanded and improved, section on generalizations added, typos corrected, references added, conclusions unchange

Quantization of the Riemann Zeta-Function and Cosmology

Quantization of the Riemann zeta-function is proposed. We treat the Riemann zeta-function as a symbol of a pseudodifferential operator and study the corresponding classical and quantum field theories. This approach is motivated by the theory of p-adic strings and by recent works on stringy cosmological models. We show that the Lagrangian for the zeta-function field is equivalent to the sum of the Klein-Gordon Lagrangians with masses defined by the zeros of the Riemann zeta-function. Quantization of the mathematics of Fermat-Wiles and the Langlands program is indicated. The Beilinson conjectures on the values of L-functions of motives are interpreted as dealing with the cosmological constant problem. Possible cosmological applications of the zeta-function field theory are discussed.Comment: 14 pages, corrected typos, references and comments adde

Essential self-adjointness of magnetic Schr\"odinger operators on locally finite graphs

We give sufficient conditions for essential self-adjointness of magnetic Schr\"odinger operators on locally finite graphs. Two of the main theorems of the present paper generalize recent results of Torki-Hamza.Comment: 14 pages; The present version differs from the original version as follows: the ordering of presentation has been modified in several places, more details have been provided in several places, some notations have been changed, two examples have been added, and several new references have been inserted. The final version of this preprint will appear in Integral Equations and Operator Theor

A One-Parameter Family of Hamiltonian Structures for the KP Hierarchy and a Continuous Deformation of the Nonlinear \W_{\rm KP} Algebra

The KP hierarchy is hamiltonian relative to a one-parameter family of Poisson structures obtained from a generalized Adler map in the space of formal pseudodifferential symbols with noninteger powers. The resulting \W-algebra is a one-parameter deformation of \W_{\rm KP} admitting a central extension for generic values of the parameter, reducing naturally to \W_n for special values of the parameter, and contracting to the centrally extended \W_{1+\infty}, \W_\infty and further truncations. In the classical limit, all algebras in the one-parameter family are equivalent and isomorphic to \w_{\rm KP}. The reduction induced by setting the spin-one field to zero yields a one-parameter deformation of \widehat{\W}_\infty which contracts to a new nonlinear algebra of the \W_\infty-type.Comment: 31 pages, compressed uuencoded .dvi file, BONN-HE-92/20, US-FT-7/92, KUL-TF-92/20. [version just replaced was truncated by some mailer

On the derivation of the t-J model: electron spectrum and exchange interactions in narrow energy bands

A derivation of the t-J model of a highly-correlated solid is given starting from the general many-electron Hamiltonian with account of the non-orthogonality of atomic wave functions. Asymmetry of the Hubbard subbands (i.e. of ``electron'' and ``hole''cases) for a nearly half-filled bare band is demonstrated. The non-orthogonality corrections are shown to lead to occurrence of indirect antiferromagnetic exchange interaction even in the limit of the infinite on-site Coulomb repulsion. Consequences of this treatment for the magnetism formation in narrow energy bands are discussed. Peculiarities of the case of ``frustrated'' lattices, which contain triangles of nearest neighbors, are considered.Comment: 4 pages, RevTe