Counterparty Risk Subject To ATE

Rating trigger ATE (Additional Termination Event) is a counterparty risk mitigant that allows banks to terminate and close out bilateral derivative contracts if the credit rating of the counterparty falls below the trigger level. Since credit default is often preceded by rating downgrades, ATE clause effectively reduces the counterparty credit risk by early termination of exposure. However, there is still the risk that counterparty may default without going through severe downgrade. This article presents a practical model for valuating CVA in the presence of ATE.Counterparty Risk, Credit Valuation Adjustment, Rating Transition, Rating Trigger, Additional Termination Event

An updated catalog of M31 globular-like clusters: UBVRI photometry, ages, and masses

We present an updated UBVRI photometric catalog containing 970 objects in the field of M31, selected from the Revised Bologna Catalog (RBC v.4.0), including 965, 967, 965, 953, and 827 sources in the individual UBVRI bands, respectively, of which 205, 123, 14, 126, and 109 objects do not have previously published photometry. Photometry is performed using archival images from the Local Group Galaxies Survey, which covers 2.2 deg^2 along the major axis of M31. We focus on 445 confirmed `globular-like' clusters and candidates, comprising typical globular and young massive clusters. The ages and masses of these objects are derived by comparison of their observed spectral-energy distributions with simple stellar population synthesis. Approximately half of the clusters are younger than 2 Gyr, suggesting that there has been significant recent active star formation in M31, which is consistent with previous results. We note that clusters in the halo (r_ projected>30kpc) are composed of two different components, older clusters with ages >10 Gyr and younger clusters with ages around 1 Gyr. The spatial distributions show that the young clusters (<2 Gyr) are spatially coincident with the galaxy's disk, including the `10 kpc ring,' the `outer ring,' and the halo of M31, while the old clusters (> 2 Gyr) are spatially correlated with the bulge and halo. We also estimate the masses of the 445 confirmed clusters and candidates in M31 and find that our estimates agree well with previously published values. We find that none of the young disk clusters can survive the inevitable encounters with giant molecular clouds in the galaxy's disk and that they will eventually disrupt on timescales of a few Gyr. Specifically, young disk clusters with a mass of 10^4 M_\odot are expected to dissolve within 3.0 Gyr and will, thus, not evolve to become globular clusters.Comment: 35 pages, 20 figures and 5 tables, accepted for publication in Ap

Star clusters in M33: updated UBVRI photometry, ages, metallicities, and masses

The photometric characterization of M33 star clusters is far from complete. In this paper, we present homogeneous $UBVRI$ photometry of 708 star clusters and cluster candidates in M33 based on archival images from the Local Group Galaxies Survey, which covers 0.8 deg$^2$ along the galaxy's major axis. Our photometry includes 387, 563, 616, 580, and 478 objects in the $UBVRI$ bands, respectively, of which 276, 405, 430, 457, and 363 do not have previously published $UBVRI$ photometry. Our photometry is consistent with previous measurements (where available) in all filters. We adopted Sloan Digital Sky Survey $ugriz$ photometry for complementary purposes, as well as Two Micron All-Sky Survey near-infrared $JHK$ photometry where available. We fitted the spectral-energy distributions of 671 star clusters and candidates to derive their ages, metallicities, and masses based on the updated {\sc parsec} simple stellar populations synthesis models. The results of our $\chi^2$ minimization routines show that only 205 of the 671 clusters ($31\%$) are older than 2 Gyr, which represents a much smaller fraction of the cluster population than that in M31 ($56\%$), suggesting that M33 is dominated by young star clusters ($<1$ Gyr). We investigate the mass distributions of the star clusters---both open and globular clusters---in M33, M31, the Milky Way, and the Large Magellanic Cloud. Their mean values are $\log(M_{\rm cl}/M_{\odot})=4.25$, 5.43, 2.72, and 4.18, respectively. The fraction of open to globular clusters is highest in the Milky Way and lowest in M31. Our comparisons of the cluster ages, masses, and metallicities show that our results are basically in agreement with previous studies (where objects in common are available); differences can be traced back to differences in the models adopted, the fitting methods used, and stochastic sampling effects.Comment: 32 pages, 12 figures, 2 tables, accepted for publication in ApJ

Improving End-to-End Speech Recognition with Policy Learning

Connectionist temporal classification (CTC) is widely used for maximum likelihood learning in end-to-end speech recognition models. However, there is usually a disparity between the negative maximum likelihood and the performance metric used in speech recognition, e.g., word error rate (WER). This results in a mismatch between the objective function and metric during training. We show that the above problem can be mitigated by jointly training with maximum likelihood and policy gradient. In particular, with policy learning we are able to directly optimize on the (otherwise non-differentiable) performance metric. We show that joint training improves relative performance by 4% to 13% for our end-to-end model as compared to the same model learned through maximum likelihood. The model achieves 5.53% WER on Wall Street Journal dataset, and 5.42% and 14.70% on Librispeech test-clean and test-other set, respectively

Valuing the health impacts from particulate air pollution in Tianjin

Although China has made dramatic economic progress in recent years, air pollution continues to be the most visible environmental problem and imposes significant health and economic costs on society. Using data on pollutant concentration and population for 2003, this paper estimates the economic costs of health related effects due to particulate air pollution in urban areas of Tianjin, China. Exposure-response functions are used to quantify the impact on human health. Value of a statistical life and benefit transfer are used to obtain the unit value of some health effects. Our results show significant health costs associated with air pollution in Tianjin. The total economic cost is estimated to be US$1.1 billion, about 3.7% of Tianjin’s GDP in 2003. The findings underscore the importance of urban air pollution control. Finally, the policy implications for alternative energy options and climate policies are given.particulate air pollution, PM10, economic valuation, Tianjin

Water Use in China’s Domestic, Industrial and Agricultural Sectors: An Empirical Analysis

Demand management plays an increasingly important role in dealing with water scarcity in China. It is important to understand the level and pattern of water use in various sectors across the regions for any measures being put into effect. The aim of this study is to enhance the understanding of the factors that influence water demand by examining closely the water use in domestic, industrial and agricultural sectors. Using province level panel data from 1997 to 2003, the examination shows that the regional disparity in the level and pattern of water uses is considerable. The estimation of water demand shows that both economic and climatic variables have significant effects on water demand. The results suggest an income elasticity of 0.42 for the domestic sector, an output elasticity of -0.32 for industrial water use (per unit of output), and an output elasticity of –0.24 for irrigated agriculture (per land area).water use, regional variation, elasticity, demand management

A critical look at power law modelling of the Internet

This paper takes a critical look at the usefulness of power law models of the Internet. The twin focuses of the paper are Internet traffic and topology generation. The aim of the paper is twofold. Firstly it summarises the state of the art in power law modelling particularly giving attention to existing open research questions. Secondly it provides insight into the failings of such models and where progress needs to be made for power law research to feed through to actual improvements in network performance.Comment: To appear Computer Communication