Do CDS spreads reflect default risks? Evidence from UK bank bailouts

CDS spreads are generally considered to reflect the credit risks of their reference entities. However, CDS spreads of the major UK banks remained relatively stable in response to the recent credit crisis. We suggest that this can be explained by changes in loss given default (LGD). To obtain the result we first derive the probabilities of default from stock option prices and then determine the LGD consistent with actual CDS spreads. Our results reveal a significant decrease in the LGD of bailed out banks over the observed period in contrast to banks which were not bailed out and non-financial companies

The effect of temperature and pressure on the distribution of iron group elements between metal and olivine phases in the process of differentiation of protoplanetary material

The distribution patterns of Ni, Co, Mn, and Cr were studied in olivines of various origins: from meteorites (chondrites, achondrites, pallasites), which are likely analogs of the protoplanetary material, to peridotite inclusions in kimberlite pipes, which are analogs of mantle material. According to X-ray microanalysis data, nickel is concentrated in peridotite olivines, while manganese is concentrated in meteoritic olivines. The maximum chromium content was found in ureilites, which were formed under reducing conditions. Experiments at pressures of 20 to 70 kbar and temperatures of 1100 to 2000 C have shown that in a mixture of olivine and Ni metal or NiO, nickel enters the silicate phase, displacing Fe into the metallic phase. Equilibrium temperatures were estimated from the Fe, Ni distribution coefficients between the metal and olivine: 1500 K for pallasites, 1600 K for olivine-bronzite H6 chondrites, 1200 K for olivine-hypersthene L6, 900 K for LL6, and 1900 K for ureilites (at P = 1 atm). The equilibrium conditions of peridotites are close to T = 1800 K and P over 100 kbar. It is concluded that there is a sharp difference between the conditions of differentiation of the protoplanetary material at the time meteorites were formed and the conditions of differentiation of the planets into concentric layers

Major Landmark in the Investigation of Outer Space

Press conference on Lunik X, and geochemical assessment of dat