Credit derivatives: new financial instruments for controlling credit risk

One of the risks of making a bank loan or investing in a debt security is credit risk, the risk of borrower default. In response to this risk, new financial instruments called credit derivatives have been developed in the past few years. Credit derivatives can help banks, financial companies, and investors manage the credit risk of their investments by insuring against adverse movements in the credit quality of the borrower. If a borrower defaults, the investor will suffer losses on the investment, but the losses can be offset by gains from the credit derivative. Thus, if used properly, credit derivatives can reduce an investor's overall credit risk.> Estimates from industry sources suggest the credit derivatives market has grown from virtually nothing two years ago to about $20 billion of transactions in 1995. This growth has been driven by the ability of credit derivatives to provide valuable new methods for managing credit risk. As with other customized derivative products, however, credit derivatives expose their users to risks and regulatory uncertainty. Controlling these risks is likely to be an important factor in the future development of the credit derivatives market.> Neal provides information on the rationale and use of credit derivatives. He describes how to measure credit risk, whom it affects, and the traditional strategies used to manage it. Next, he shows how credit derivatives can help manage credit risk. Finally, he examines the risks and regulatory issues associated with credit derivatives.Derivative securities ; Risk ; Credit

The United Kingdom Ministry of Defence – the Case for Followership as a key Element of Leadership Development

Published in Strategic Management Quarterly (2015) Vol 3 Issue 4Using the Kelley (1992) Followership Style instrument this study explores the role and perceptions of Followership within the UK Ministry of Defence. In particular, within the Armed Services and the Civil Service it was apparent from the literature that only the RAF formally recognised the role of Followership within their Leadership staff development programmes, hence the research aimed to see whether this was reflected in self-perceptions of Followership Style and the extent to which it is applied within the organisation. The analysis concluded that the analysed sample (298 responses) produced an atypical profile compared to other studies that have used the instrument. The RAF showed statistically significant higher scores than the other Armed Services or the Civil Servants and scores increased with Rank/Grade. The analysis also highlighted that the individuals seemed not to be recognised as good Followers by their leaders, they appeared not to recognise their reports as good Followers and in all cases the organisation seemed not to recognise their value. These aspects provide scope for further research to better understand the organisational culture, processes and practices that appear to act as a barrier to the extraction of the benefits of having good Followers even in an area where Star Followers dominate

Beyond Concurrent Chemoradiation: The Emerging Role of PD-1/PD-L1 Inhibitors in Stage III Lung Cancer.

Concurrent chemoradiation (cCRT) with platinum-based chemotherapy is standard-of-care therapy for patients with stage III unresectable non-small cell lung cancer (NSCLC). Although cCRT is potentially curative, 5-year overall survival has hovered around 20%, despite extensive efforts to improve outcomes with increasing doses of conformal radiation and intensification of systemic therapy with either induction or consolidation chemotherapy. PD-1/PD-L1 immune checkpoint inhibitors have demonstrated unprecedented efficacy in patients with stage IV NSCLC. In addition, preclinical and early clinical evidence suggests that chemotherapy and radiation may work synergistically with anti-PD-1/PD-L1 therapy to promote antitumor immunity, which has led to the initiation of clinical trials testing these drugs in patients with stage III NSCLC. A preliminary report of a randomized phase III trial, the PACIFIC trial, demonstrated an impressive increase in median progression-free survival with consolidative durvalumab, a PD-L1 inhibitor, compared with observation after cCRT. Here, we discuss the clinical and translational implications of integrating PD-1/PD-L1 inhibitors in the management of patients with unresectable stage III NSCLC

On the Marginal Value of a Fish: Some Evidence from a Steelhead Fishery

Policymakers and other interested parties frequently request information on the recreational value of a fish. Although fishing valuation studies date back at least 25 years, most studies focus on the average value of a fish. If the purpose of such estimates is to measure the value of incremental changes in fish numbers, then use of average estimates may lead to an incorrect policy decisions. The objective of this analysis is to estimate the marginal value of a steelhead trout in a recreational fishery on the John Day River of Oregon. The study uses contingent valuation procedures to elicit willingness to pay estimates for improvements in fish numbers and success rates. For the anglers in this survey, the value of an additional steelhead is $6.65 under current catch conditions. This value is much lower than values currently used in public debates in the Pacific Northwest, but similar to some marginal values reported in the recent literature. Implications of these values relative to average values are discussed.Demand and Price Analysis, Environmental Economics and Policy, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy,