The economics of collateral

In this paper we study how the use of collateral is evolving under the influence of regulatory reform and changing market structure. We start with a critical review of the recent empirical literature on the supply and demand of collateral which has focussed on the issue of ‘collateral scarcity’. We argue that while limited data availability does not allow a comprehensive view of the market for collateral, it is unlikely that there is an overall shortage of collateral. However, it is quite possible that there may be bottlenecks within the system which mean that available collateral is immobilized in one part of the system and unattainable by credit-worthy borrowers. We then describe how these problems sometimes can be overcome by improved information systems and collateral transformation. We discuss how collateral management techniques differ between banks and derivatives markets infrastructures including, in particular, CCPs. In order to assess the impact of alternative institutional arrangements on collateral demand, we introduce a theoretical model of an OTC derivatives market consisting of investors and banks arrayed in several regions or market segments. We simulate this model under alternative forms meant to capture the implications of moving to mandatory CCP clearing and mandatory initial margin requirements for non-cleared OTC derivatives

Bankers' pay and the evolving structure of US banking

We study the evolution of pay in US bank holding companies since 1986. We first set out the main empirical characteristics in both cross-section and time series focussing on banking structure (size and concentration) and pay characteristics given by labor's share of bank value-added, the level of an average bankers' real compensation and the sensitivity of that compensation to firm performance. Then we introduce a structural model in which bankers of heterogenous talent are matched with banks where shareholders design compensation contracts so as to maximise shareholder payoff in the face of managerial moral hazard. We calibrate this model to see if it provides an internally consistent account of the observed empirical patterns. By incorporating structural changes coinciding with three major changes in banking regulation we are able to reproduce changes in pay level and pay sensitivity observed and to establish a secular decline in labor's share consistent with a superstar firm effect in US banking. Overall we find that the observed pay fits closely to fair pay as predicted by our equilibrium model

Bankers and bank investors: reconsidering the economies of scale in banking

We study economies of scale in banking by viewing banks as combinations of financial and human capital that create rents which accrue to investors and bankers. Applying this approach to annual data of US bank holding companies since 1990, we find much stronger evidence of economies of scale in returns to bankers as compared to returns to investors. The scale economies appear to be particularly strong in the top size decile of banks measured by total assets. We find that rents accruing to bankers are particularly strong in banks with a relatively large share of non-interest income and that for the largest banks a reduction of net interest margin is associated with an increase in bankers' rents. We find incorporating observable proxies for funding efficiency and presence in wholesale banking activities greatly reduces the pure size effect

Tervisepsühholoogia: psühholoogi roll vähiravis

Vähidiagnoos, aga ka muu raske kroonilise haiguse diagnoos on šokk nii täiskasvanule, lapsele kui ka nende lähedastele. Sõltuvalt patsiendi taustsüsteemist ja tugivõrgustiku või perekonna tugevusest võib psühholoogiline tugi olla äärmiselt vajalik nii diagnoosi saamise järel, raviperioodil kui ka pärast ravi lõppu. Artiklis on antud teaduskirjanduse põhjal ülevaade vähihaigete laste ja täiskasvanute vaimse tervise probleemkohtadest, kirjeldatud psühholoogilise toe praegust olukorda Eestis ning käsitletud patsientide muresid, millega puutuvad igapäevaselt kokku kahe onkoloogiaosakonna psühholoogid. Eesti Arst 2018; 97(6):319–325 &nbsp

Luminous superclusters: remnants from inflation

We derive the luminosity and multiplicity functions of superclusters compiled for the 2dF Galaxy Redshift Survey, the Sloan Digital Sky Survey (Data Release 4), and for three samples of simulated superclusters. We find for all supercluster samples Density Field (DF) clusters, which represent high-density peaks of the class of Abell clusters, and use median luminosities/masses of richness class 1 DF-clusters to calculate relative luminosity/mass functions. We show that the fraction of very luminous (massive) superclusters in real samples is more than tenfolds greater than in simulated samples. Superclusters are generated by large-scale density perturbations which evolve very slowly. The absence of very luminous superclusters in simulations can be explained either by non-proper treatment of large-scale perturbations, or by some yet unknown processes in the very early Universe.Comment: 6 pages, 3 Figures, submitted for Astronomy and Astrophysic

Superclusters of galaxies from the 2dF redshift survey. I. The catalogue

We use the 2dF Galaxy Redshift Survey data to compile catalogues of superclusters for the Northern and Southern regions of the 2dFGRS, altogether 543 superclusters at redshifts 0.009 < z < 0.2. We analyse methods of compiling supercluster catalogues and use results of the Millennium Simulation to investigate possible selection effects and errors. We find that the most effective method is the density field method using smoothing with an Epanechnikov kernel of radius 8 Mpc/h. We derive positions of the highest luminosity density peaks and find the most luminous cluster in the vicinity of the peak, this cluster is considered as the main cluster and its brightest galaxy the main galaxy of the supercluster. In catalogues we give equatorial coordinates and distances of superclusters as determined by positions of their main clusters. We also calculate the expected total luminosities of the superclusters.Comment: 16 pages, 11 figures, submitted for Astronomy and Astrophysics. High-resolution pdf file and supplementary data can be found at http://www.aai.ee/~maret/2dfscl.htm

Superclusters of galaxies from the 2dF redshift survey. II. Comparison with simulations

We investigate properties of superclusters of galaxies found on the basis of the 2dF Galaxy Redshift Survey, and compare them with properties of superclusters from the Millennium Simulation. We study the dependence of various characteristics of superclusters on their distance from the observer, on their total luminosity, and on their multiplicity. The multiplicity is defined by the number of Density Field (DF) clusters in superclusters. Using the multiplicity we divide superclusters into four richness classes: poor, medium, rich and extremely rich. We show that superclusters are asymmetrical and have multi-branching filamentary structure, with the degree of asymmetry and filamentarity being higher for the more luminous and richer superclusters. The comparison of real superclusters with Millennium superclusters shows that most properties of simulated superclusters agree very well with real data, the main differences being in the luminosity and multiplicity distributions.Comment: 15 pages, 13 Figures, submitted for Astronomy and Astrophysic

Formation of voids in the Universe within the Lemaitre-Tolman model

We develop models of void formation starting from a small initial fluctuation at recombination and growing to a realistic present day density profile in agreement with observations of voids. The model construction is an extension of previously developed algorithms for finding a Lemaitre-Tolman metric that evolves between two profiles of either density or velocity specified at two times. Of the 4 profiles of concern -- those of density and velocity at recombination and at the present day -- two can be specified and the other two follow from the derived model. We find that, in order to reproduce the present-day void density profiles, the initial velocity profile is more important than the initial density profile. Extrapolation of current CMB observations to the scales relevant to proto-voids is very uncertain. Even so, we find that it is very difficult to make both the initial density and velocity fluctuation amplitudes small enough, and still obtain a realistic void by today.Comment: MN2e LaTeX style file, 17 pages, 16 figures, 22 figure files; replecement has minor changes in reference

The supercluster-void network V. Alternative evidence for its regularity

The distribution of Abell clusters of galaxies is analysed to study the regularity of the supercluster-void network. A new geometric method sensitive to the regularity of the location of clusters is applied. We find that the supercluster-void network resembles a cubical lattice over the whole space investigated. The distribution of rich superclusters is not isotropic: along the main axis of the network it is periodic with a step of length about 130 Mpc (for Hubble constant h=1), whereas along the diagonal of the network the period is larger. This large-scale inhomogeneity is compatible with recent CMB data.Comment: 7 pages LaTeX text (sty files added), 4 PostScript Figures, submitted to Astronomy and Astrophysic

Superclusters of galaxies in the 2dF redshift survey. III. The properties of galaxies in superclusters

We use catalogues of superclusters of galaxies from the 2dF Galaxy Redshift Survey to study the properties of galaxies in superclusters. We compare the properties of galaxies in high and low density regions of rich superclusters, in poor superclusters and in the field, as well as in groups, and of isolated galaxies in superclusters of various richness. We show that in rich superclusters the values of the luminosity density smoothed on a scale of 8 \Mpc are higher than in poor superclusters: the median density in rich superclusters is $\delta \approx 7.5$, in poor superclusters $\delta \approx 6.0$. Rich superclusters contain high density cores with densities $\delta > 10$ while in poor superclusters such high density cores are absent. The properties of galaxies in rich and poor superclusters and in the field are different: the fraction of early type, passive galaxies in rich superclusters is slightly larger than in poor superclusters, and is the smallest among the field galaxies. Most importantly, in high density cores of rich superclusters ($\delta > 10$) there is an excess of early type, passive galaxies in groups and clusters, as well as among those which do not belong to groups or clusters. The main galaxies of superclusters have a rather limited range of absolute magnitudes. The main galaxies of rich superclusters have larger luminosities than those of poor superclusters and of groups in the field. Our results show that both the local (group/cluster) environments and global (supercluster) environments influence galaxy morphologies and their star formation activity.Comment: 13 pages, 10 figures, submitted to Astronomy and Astrophysic