Hedge funds, credit risk transfer and financial stability.

Over the past decade, central bankers and financial institution supervisors have sharpened their focus on the increasingly important role that private pools of investment funds play in global financial markets. The growth in these pools has contributed significantly to market efficiency and financial stability by expanding liquidity in many financial markets, improving price discovery, and, ultimately, lowering the costs of capital. Private investment pools and the alternative investment strategies they pursue have contributed to a signifi cant expansion of the global markets and have helped accelerate the evolution in traded credit products such as credit derivatives, collateralized debt obligations, and the securitization of an increasing array of traditionally illiquid assets. However, because of the lack of transparency and an established regime of supervision of these investment vehicles, policymakers and supervisors have become concerned about customer protection and the potential for systemic risk. This paper discusses some of the key issues confronting supervisors in light of the recent growth of private investment pools and the rapid developments in the area of credit risk transfer, with a particular focus on the implications of these trends regarding systemic risk and financial stability.

Cryogenic propellant management: Integration of design, performance and operational requirements

The integration of the design features of the Shuttle elements into a cryogenic propellant management system is described. The implementation and verification of the design/operational changes resulting from design deficiencies and/or element incompatibilities encountered subsequent to the critical design reviews are emphasized. Major topics include: subsystem designs to provide liquid oxygen (LO2) tank pressure stabilization, LO2 facility vent for ice prevention, liquid hydrogen (LH2) feedline high point bleed, pogo suppression on the Space Shuttle Main Engine (SSME), LO2 low level cutoff, Orbiter/engine propellant dump, and LO2 main feedline helium injection for geyser prevention

Rational combinations of Betti diagrams of complete intersections

We investigate decompositions of Betti diagrams over a polynomial ring within the framework of Boij-S\"oderberg theory. That is, given a Betti diagram, we determine if it is possible to decompose it into the Betti diagrams of complete intersections. To do so, we determine the extremal rays of the cone generated by the diagrams of complete intersections and provide a rudimentary algorithm for decomposition.Comment: This research was conducted at the Willamette Mathematics Consortium RE

Multi-shocks in asymmetric simple exclusions processes: Insights from fixed-point analysis of the boundary-layers

The boundary-induced phase transitions in an asymmetric simple exclusion process with inter-particle repulsion and bulk non-conservation are analyzed through the fixed points of the boundary layers. This system is known to have phases in which particle density profiles have different kinds of shocks. We show how this boundary-layer fixed-point method allows us to gain physical insights on the nature of the phases and also to obtain several quantitative results on the density profiles especially on the nature of the boundary-layers and shocks.Comment: 12 pages, 8 figure

YOUNG STARS IN AN OLD BULGE: A NATURAL OUTCOME OF INTERNAL EVOLUTION IN THE MILKY WAY

The center of our disk galaxy, the Milky Way, is dominated by a boxy/peanut-shaped bulge. Numerous studies of the bulge based on stellar photometry have concluded that the bulge stars are exclusively old. The perceived lack of young stars in the bulge strongly constrains its likely formation scenarios, providing evidence that the bulge is a unique population that formed early and separately from the disk. However, recent studies of individual bulge stars using the microlensing technique have reported that they span a range of ages, emphasizing that the bulge may not be a monolithic structure. In this Letter we demonstrate that the presence of young stars that are located predominantly nearer to the plane is expected for a bulge that has formed from the disk via dynamical instabilities. Using an N-body+ smoothed particle hydrodynamics simulation of a disk galaxy forming out of gas cooling inside a dark matter halo and forming stars, we find a qualitative agreement between our model and the observations of younger metal-rich stars in the bulge. We are also able to partially resolve the apparent contradiction in the literature between results that argue for a purely old bulge population and those that show a population comprised of a range in ages; the key is where to look