Credit Ratings and Bank Monitoring Ability

In this paper we use credit rating data from two Swedish banks to elicit evidence on these banks’ loan monitoring ability. We do so by comparing the ability of bank ratings to predict loan defaults relative to that of public ratings from the Swedish credit bureau. We test the banks’ abilility to forecast the credit bureau’s ratings and vice versa. We show that one of the banks has a superior predictive ability relative to the credit bureau. This is evidence that bank credit ratings do contain valuable private information and suggests they may be be a reasonable basis for risk management. However, public ratings are also found to have predictive ability for future bank ratings, indicating that risk analysis should be based on both public and bank ratings. The methods we use represent a new basket of straightforward techniques that enable both financial institutions and regulators to assess the performance of credit ratings systems.Monitoring;banks;credit bureau;private information;ratings;regulation;supervision

Credit Cycle and Adverse Selection Effects in Consumer Credit Markets – Evidence from the HELOC Market

We empirically study how the underlying riskiness of the pool of home equity line of credit originations is affected over the credit cycle. Drawing from the largest existing database of U.S. home equity lines of credit, we use county-level aggregates of these loans to estimate panel regressions on the characteristics of the borrowers and their loans, and competing risk hazard regressions on the outcomes of the loans. We show that when the expected unemployment risk of households increases, riskier households tend to borrow more. As a consequence, the pool of households that borrow on home equity lines of credit worsens along both observable and unobservable dimensions. This is an interesting example of a type of dynamic adverse selection that can worsen the risk characteristics of new lending, and suggests another avenue by which the precautionary demand for liquidity may affect borrowing.Home equity loan;adverse selection;liquidity;consumption;housing finance

Vortex phase transformations probed by the local ac response of Bi_{2}Sr_{2}CaCu_{2}O_{8+\delta} single crystals with various doping

The linear ac response of the vortex system is measured locally in Bi-2212 single crystals at various doping, using a miniature two-coil mutual-inductance technique. It was found that a step-like change in the local ac response takes place exactly at the first-order transition (FOT) temperature T_{FOT}(H) determined by a global dc magnetization measurement. The T_{FOT}(H) line in the H-T phase diagram becomes steeper with increasing doping. In the higher-field region where the FOT is not observed, the local ac response still shows a broadened but distinct feature, which can be interpreted to mark the growth of a short-range order in the vortex system.Comment: 4 pages, including 5 eps figure

Do we live in the universe successively dominated by matter and antimatter?

We wonder if a cyclic universe may be dominated alternatively by matter and antimatter. Such a scenario demands a mechanism for transformation of matter to antimatter (or antimatter to matter) during the final stage of a big crunch. By giving an example, we have shown that in principle such a mechanism is possible. Our mechanism is based on a hypothetical repulsion between matter and antimatter, existing at least deep inside the horizon of a black hole. When universe is reduced to a supermassive black hole of a small size, a very strong field of the conjectured force might create (through a Schwinger type mechanism) particle-antiparticle pairs from the quantum vacuum. The amount of antimatter created from the vacuum is equal to the decrease of mass of the black hole and violently repelled from it. When the size of the black hole is sufficiently small, the creation of antimatter may become so fast, that matter of our Universe might be transformed to antimatter in a fraction of second. Such a fast conversion of matter into antimatter may look as a Big Bang. Our mechanism prevents a singularity; a new cycle might start with an initial size more than 30 orders of magnitude greater than the Planck length, suggesting that there is no need for inflationary scenario in Cosmology. In addition, there is no need to invoke CP violation for explanation of matter-antimatter asymmetry. Simply, our present day Universe is dominated by matter, because the previous universe was dominated by antimatter

Double-slit interference pattern from single-slit screen and its gravitational analogues

The double slit experiment (DSE) is known as an important cornerstone in the foundations of physical theories such as Quantum Mechanics and Special Relativity. A large number of different variants of it were designed and performed over the years. We perform and discuss here a new verion with the somewhat unexpected results of obtaining interference pattern from single-slit screen. This outcome, which shows that the routes of the photons through the array were changed, leads one to discuss it, using the equivalence principle, in terms of geodesics mechanics. We show using either the Brill's version of the canonical formulation of general relativity or the linearized version of it that one may find corresponding and analogous situations in the framework of general relativity.Comment: 51 pages, 12 Figures five of them contain two subfigures and thus the number of figures is 17, 1 Table. Some minor changes introduced, especially, in the reference

Dynamical 1/N approach to time-dependent currents through quantum dots

A systematic truncation of the many-body Hilbert space is implemented to study how electrons in a quantum dot attached to conducting leads respond to time-dependent biases. The method, which we call the dynamical 1/N approach, is first tested in the most unfavorable case, the case of spinless fermions (N=1). We recover the expected behavior, including transient ringing of the current in response to an abrupt change of bias. We then apply the approach to the physical case of spinning electrons, N=2, in the Kondo regime for the case of infinite intradot Coulomb repulsion. In agreement with previous calculations based on the non-crossing approximation (NCA), we find current oscillations associated with transitions between Kondo resonances situated at the Fermi levels of each lead. We show that this behavior persists for a more realistic model of semiconducting quantum dots in which the Coulomb repulsion is finite.Comment: 18 pages, 7 eps figures, discussion extended for spinless electrons and typo

Relativistic Hydrodynamic Evolutions with Black Hole Excision

We present a numerical code designed to study astrophysical phenomena involving dynamical spacetimes containing black holes in the presence of relativistic hydrodynamic matter. We present evolutions of the collapse of a fluid star from the onset of collapse to the settling of the resulting black hole to a final stationary state. In order to evolve stably after the black hole forms, we excise a region inside the hole before a singularity is encountered. This excision region is introduced after the appearance of an apparent horizon, but while a significant amount of matter remains outside the hole. We test our code by evolving accurately a vacuum Schwarzschild black hole, a relativistic Bondi accretion flow onto a black hole, Oppenheimer-Snyder dust collapse, and the collapse of nonrotating and rotating stars. These systems are tracked reliably for hundreds of M following excision, where M is the mass of the black hole. We perform these tests both in axisymmetry and in full 3+1 dimensions. We then apply our code to study the effect of the stellar spin parameter J/M^2 on the final outcome of gravitational collapse of rapidly rotating n = 1 polytropes. We find that a black hole forms only if J/M^2<1, in agreement with previous simulations. When J/M^2>1, the collapsing star forms a torus which fragments into nonaxisymmetric clumps, capable of generating appreciable ``splash'' gravitational radiation.Comment: 17 pages, 14 figures, submitted to PR

Energetic particle influence on the Earth's atmosphere

This manuscript gives an up-to-date and comprehensive overview of the effects of energetic particle precipitation (EPP) onto the whole atmosphere, from the lower thermosphere/mesosphere through the stratosphere and troposphere, to the surface. The paper summarizes the different sources and energies of particles, principally galactic cosmic rays (GCRs), solar energetic particles (SEPs) and energetic electron precipitation (EEP). All the proposed mechanisms by which EPP can affect the atmosphere are discussed, including chemical changes in the upper atmosphere and lower thermosphere, chemistry-dynamics feedbacks, the global electric circuit and cloud formation. The role of energetic particles in Earth’s atmosphere is a multi-disciplinary problem that requires expertise from a range of scientific backgrounds. To assist with this synergy, summary tables are provided, which are intended to evaluate the level of current knowledge of the effects of energetic particles on processes in the entire atmosphere

Measurement of the View the tt production cross-section using eμ events with b-tagged jets in pp collisions at √s = 13 TeV with the ATLAS detector

This paper describes a measurement of the inclusive top quark pair production cross-section (σtt¯) with a data sample of 3.2 fb−1 of proton–proton collisions at a centre-of-mass energy of √s = 13 TeV, collected in 2015 by the ATLAS detector at the LHC. This measurement uses events with an opposite-charge electron–muon pair in the final state. Jets containing b-quarks are tagged using an algorithm based on track impact parameters and reconstructed secondary vertices. The numbers of events with exactly one and exactly two b-tagged jets are counted and used to determine simultaneously σtt¯ and the efficiency to reconstruct and b-tag a jet from a top quark decay, thereby minimising the associated systematic uncertainties. The cross-section is measured to be: σtt¯ = 818 ± 8 (stat) ± 27 (syst) ± 19 (lumi) ± 12 (beam) pb, where the four uncertainties arise from data statistics, experimental and theoretical systematic effects, the integrated luminosity and the LHC beam energy, giving a total relative uncertainty of 4.4%. The result is consistent with theoretical QCD calculations at next-to-next-to-leading order. A fiducial measurement corresponding to the experimental acceptance of the leptons is also presented