Indian Convertible Bonds with Unspecified Terms: An Empirical Study

Indian convertible bonds have two peculiar features that make them possibly unique in the world: a) the bonds are compulsorily converted into equity without any option, and b) the conversion terms are not specified at the time of issue but are left to be determined subsequently by the Controller of Capital Issues (CCI) who is the government functionary regulating capital issues in India. A naive model would say that the market simply forms an estimate of the likely conversion terms and then values the bond as if these terms were prespecified. This paper examines the market prices of one of the largest issues of Indian convertible bonds with unspecified terms. The empirical investigation convincingly rejects the naive model and demonstrates that changes in the markets expectation of the conversion terms are a significant factor affecting the pricing relationship. These changes are significantly correlated with the stock price itself. We do not, however, find any evidence that the market expects the CCI to adjust the conversion terms on the basis of the actual market price to protect the bondholder. But, there is strong evidence that changes in expected conversion terms affect the share price through the dilution effect. Since the unspecified terms have only added to the uncertainty of the bondholders without giving them any perceived benefits we recommend that this system should be abolished. In a companion paper, Barua and Varma (1991) present a theoretical valuation model for the Indian convertible bonds with unspecified terms. The empirical results in this paper confirm the predictions of that model.

Hall effect in the marginal Fermi liquid regime of high-Tc superconductors

The detailed derivation of a theory for transport in quasi-two-dimensional metals, with small-angle elastic scattering and angle-independent inelastic scattering is presented. The transport equation is solved for a model Fermi surface representing a typical cuprate superconductor. Using the small-angle elastic and the inelastic scattering rates deduced from angle-resolved photoemission experiments, good quantitative agreement with the observed anomalous temperature dependence of the Hall angle in optimally doped cuprates is obtained, while the resistivity remains linear in temperature. The theory is also extended to the frequency-dependent complex Hall angle

Heavy-Fermions in a Transition-Metal Compound: LiV2O4LiV_2O_4

The recent discovery of heavy-Fermion properties in Lithium Vanadate and the enormous difference in its properties from the properties of Lithium Titanate as well as of the manganite compounds raise some puzzling questions about strongly correlated Fermions. These are disscussed as well as a solution to the puzzles provided.Comment: late

Quality control of molluscan shellfish products

Since the molluscan shellfish filter large quantities of water during their feeding process, there are chances of accumulation of toxic heavy metals in their body, if the environment is polluted with toxic metals

Kondo Insulators Modeled by the One Dimensional Anderson Lattice: A Numerical Renormalization Group Study

In order to better understand Kondo insulators, we have studied both the symmetric and asymmetric Anderson lattices at half-filling in one dimension using the density matrix formulation of the numerical renormalization group. We have calculated the charge gap, spin gap and quasiparticle gap as a function of the repulsive interaction U using open boundary conditions for lattices as large as 24 sites. We find that the charge gap is larger than the spin gap for all U for both the symmetric and asymmetric cases. RKKY interactions are evident in the f-spin-f-spin correlation functions at large U in the symmetric case, but are suppressed in the asymmetric case as the f-level approaches the Fermi energy. This suppression can also be seen in the staggered susceptibility and it is consistent with neutron scattering measurements in CeNiSn.Comment: 32 pages, Latex file with Postcript figures

Some observations on the structure of the filamentous particles of several plant viruses

RESP-572