Liability-driven investment and pension fund exposure to emerging markets: A Minskyan analysis

This paper explores the determinants and implications of the growing allocation of insurance companies and pension funds to emerging markets. The key contention put forward is that liabilities are at the core of the portfolio choice of insurance companies and pension funds, and that this has important consequences for the stability of asset demand. The paper supports this contention with a theoretical framework based on Hyman Minsky and the results from 22 semi-structured interviews with European insurance companies and pension funds’ executives, investment consultants, and asset managers. It shows that the rising insurance companies and pension funds’ demand for emerging markets’ assets has to be analysed in the context of the pressures resulting from structural funding deficits and low yields. Emerging markets’ assets are sought as part of the sector’s strategy to increase returns and, given their subordinate integration into a spatially uneven international monetary and financial system, remain not suited to directly meet insurance companies and pension funds’ liabilities. This causes insurance companies and pension funds’ demand for these assets to be volatile and independent of conditions in these countries, reproducing emerging markets’ monetary and financial subordination. By stressing the structural financial (in)stability implications insurance companies and pension funds’ liabilities have for emerging markets’ asset demand, the paper contributes to the literature on insurance companies and pension funds’ investments in emerging markets and bridges the gap between those which have noted the importance of liability conditions for insurance companies and pension funds and the literature pointing to the destabilising impact of insurance companies and pension funds due to behavioural and agency issues. Moreover, by basing itself on a Minskyan theoretical framework, it responds to recent calls for a more systematic incorporation of heterodox economic thought into financial geography

Too Big to Manage: US Megabanks’ Competition by Innovation and the Microfoundations of Financialization

Disagreements over the systemic implications—the future—of financialization can be traced in part to the absence of sustained attention to the role of banking firms in driving this secular shift forward. That is, the financialization literature lacks an adequate microfoundation. Accounting for the drivers of financialization processes solely at the macro level overlooks the problems of how these processes came about and whether they are sustainable. This paper addresses this explanatory gap, arguing that a key independent microeconomic driver of increasing financialization did exist: the incessant efforts by money-centre banks in the USA to break out of Depression-era restrictions on their size, activities, and markets. These banks’ growth strategies in turbulent times led to an institutional (meso) shift—the rise of a megabank-centred shadow banking system—that now shapes global financial architecture even while operating in ways that are unsustainable. In short, too-big-to-manage megabanks are at the heart of the fragility and instability of the economy today

Putting a “C60 Ball” and Chain to Chlorin e6 Improves Its Cellular Uptake and Photodynamic Performances

Chlorin e6 (Ce6) and fullerene (C60) are among the most used photosensitizers (PSs) for photodynamic therapy (PDT). Through the combination of the chemical and photophysical properties of Ce6 and C60, in principle, we can obtain an “ideal” photosensitizer that is able to bypass the limitations of the two molecules alone, i.e., the low cellular uptake of Ce6 and the scarce solubility and absorption in the red region of the C60. Here, we synthesized and characterized a Ce6–C60 dyad. The UV-Vis spectrum of the dyad showed the typical absorption bands of both fullerene and Ce6, while a quenching of Ce6 fluorescence was observed. This behavior is typical in the formation of a fullerene–antenna system and is due to the intramolecular energy, or electron transfer from the antenna (Ce6) to the fullerene. Consequently, the Ce6–C60 dyad showed an enhancement in the generation of reactive oxygen species (ROS). Flow cytometry measurements demonstrated how the uptake of the Ce6 was strongly improved by the conjugation with C60. The Ce6–C60 dyad exhibited in A431 cancer cells low dark toxicity and a higher PDT efficacy than Ce6 alone, due to the enhancement of the uptake and the improvement of ROS generation

Irreducible Multiplets of Three-Quark Operators on the Lattice: Controlling Mixing under Renormalization

High luminosity accelerators have greatly increased the interest in semi-exclusive and exclusive reactions involving nucleons. The relevant theoretical information is contained in the nucleon wavefunction and can be parametrized by moments of the nucleon distribution amplitudes, which in turn are linked to matrix elements of three-quark operators. These can be calculated from first principles in lattice QCD. However, on the lattice the problems of operator mixing under renormalization are rather involved. In a systematic approach we investigate this issue in depth. Using the spinorial symmetry group of the hypercubic lattice we derive irreducibly transforming three-quark operators, which allow us to control the mixing pattern.Comment: 13 page

Quantitative Analysis of Bloggers Collective Behavior Powered by Emotions

Large-scale data resulting from users online interactions provide the ultimate source of information to study emergent social phenomena on the Web. From individual actions of users to observable collective behaviors, different mechanisms involving emotions expressed in the posted text play a role. Here we combine approaches of statistical physics with machine-learning methods of text analysis to study emergence of the emotional behavior among Web users. Mapping the high-resolution data from digg.com onto bipartite network of users and their comments onto posted stories, we identify user communities centered around certain popular posts and determine emotional contents of the related comments by the emotion-classifier developed for this type of texts. Applied over different time periods, this framework reveals strong correlations between the excess of negative emotions and the evolution of communities. We observe avalanches of emotional comments exhibiting significant self-organized critical behavior and temporal correlations. To explore robustness of these critical states, we design a network automaton model on realistic network connections and several control parameters, which can be inferred from the dataset. Dissemination of emotions by a small fraction of very active users appears to critically tune the collective states

Magnetosensitive e-skins with directional perception for augmented reality

Electronic skins equipped with artificial receptors are able to extend our perception beyond the modalities that have naturally evolved. These synthetic receptors offer complimentary information on our surroundings and endow us with novel means of manipulating physical or even virtual objects. We realize highly compliant magnetosensitive skins with directional perception that enable magnetic cognition, body position tracking, and touchless object manipulation. Transfer printing of eight high-performance spin valve sensors arranged into two Wheatstone bridges onto 1.7-mm-thick polyimide foils ensures mechanical imperceptibility. This resembles a new class of interactive devices extracting information from the surroundings through magnetic tags. We demonstrate this concept in augmented reality systems with virtual knob-turning functions and the operation of virtual dialing pads, based on the interaction with magnetic fields. This technology will enable a cornucopia of applications from navigation, motion tracking in robotics, regenerative medicine, and sports and gaming to interaction in supplemented reality

The Impact of Geographic Distance on Online Social Interactions

Online social networking services entice millions of users to spend hours every day interacting with each other. The focus of this work is to explain the effect that geographic distance has on online social interactions and, simultaneously, to understand the interplay between the social characteristics of friendship ties and their spatial properties. We analyze data from a large-scale online social network, Tuenti, with about 10 million active users: our sample includes user profiles, user home locations and online social interactions among Tuenti members. Our findings support the idea that spatial distance constraints whom users interact with, but not the intensity of their social interactions. Furthermore, friendship ties belonging to denser connected groups tend to arise at shorter spatial distances than social ties established between members belonging to different groups. Finally, we show that our findings mostly do not depend on the age of the users, although younger users seem to be slightly more constrained to shorter geographic distances. Augmenting social structure with geographic information adds a new dimension to social network analysis and a large number of theoretical investigations and practical applications can be pursued for online social systems, with many promising outcomes. As the amount of available location-based data is increasing, our findings and results open the door to future possibilities: researchers would benefit from these insights when studying online social services, while developers should be aware of these additional possibilities when building systems and applications related to online social platforms