Debt Insurance Research Articles

A Review of Research on the Impact of Equity Investment on the Debt Financing of Invested Enterprises

To promote the theoretical and empirical research on the linkage of “stock loan debt insurance”, this paper summarizes the current situation of English and Chinese literatures research on the impact of VC/PE on the debt financing of invested enterprises. At present, the relevant research on the impact of VC/PE on the debt financing of invested enterprises in English literatures mainly focuses on the role and mechanism of third-party VC/PE, the role and mechanism of bank-affiliated VC/PE. The relevant research on the impact of VC/PE on the debt financing of invested enterprises in Chinese literatures mainly focuses on the direct role of third-party VC/PE and the mechanism of third-party VC/PE. From the relevant research results of English literatures and Chinese literatures, scholars generally believe that VC/PE has a positive impact on the debt financing of invested enterprises. The certification effect, corporate governance effect and ownership effect of VC/PE are the main mechanisms. In general, scholars’ research on ESG equity investment decisions of equity investment institutions for technology-based SMEs is relatively weak; in addition, scholars have rarely studied the impact of ESG equity investment intervention on the credit behavior of banks and technology-based SMEs. Under the concept of ESG, the academic research on the theoretical quantification and empirical estimation of the influence mechanism of ESG equity investment on the bank credit decision-making of technology-based SMEs needs to be carried out urgently.

海外投资债权保险保费厘定思路分析

海外投资债权保险保费厘定思路分析

Commentary to the judgement of the Supreme Court of 13 June 2019, file no. III UK 178/18, concerning the normative character of the agreement for an arrangement for payment in instalments of social insurance debt

Commentary to the judgement of the Supreme Court of 13 June 2019, file no. III UK 178/18, concerning the normative character of the agreement for an arrangement for payment in instalments of social insurance debt

ANALISIS HUKUM TERHADAP HAK-HAK ATAS TANAH SEBAGAI JAMINAN HUTANG DENGAN DIBEBANI HAK TANGGUNGAN

ABSTRACT
 
 The right on land as debt insurance be burdened by the right of burden as be mentioned in Article 51 only involve the right of ownership, the right of building usage. Because of the validation of the validation of laws about the right of burden as be arranged in Laws No. 4/1996, the right of usage is the right which is be registered and because its characteristics can be taken oven so that can be burdened by the right of burden. It is also can be done to the building on the land which is obligate to be registered and because its characteristics can be taken over so that can be burdened by the right of burden. Of course it is also to the building on land which different of its ownership whereas the principle of horizontal i of custom law, that become basic of UUPA, can be burdened by the right of burden.
 
 Kata Kunci:Hak-hak atas tanah yang dapat dibebani hak tanggungan.

Fiscal austerity, growth prospects, and sovereign CDS spreads: The Eurozone and beyond

This paper applies both conventional panel data models and a dynamic simultaneous equations model to analyze the impact of fiscal austerity and growth prospects along with other macro fundamentals on the pricing of sovereign credit default swaps (CDS) for a panel of 36 countries including the Eurozone. We find that austerity practice generally leads to an expectation of improved fiscal situations, which tends to help the CDS market grow more confidence in indebted sovereigns׳ ability to service their debt. The public debt to GDP ratio and projected future output growth also play an important role in determining the prices of sovereign debt insurance. Our analyses further show that the behavior of CDS spreads is considerably affected by common time trends over the sample period.

Ułatwienia w opłacaniu składek na ubezpieczenia społeczne – zagadnienia terminologiczne

The provides an analysis of the term “reductions” in reference to paying contributions. It has been indicated that social insurance debt write offs are not recognized as reductions. Moreover, the author proposes a modification of the term “the mechanisms used to facilitate the payment of the contribution by the payers” and an expansion of its scope of meaning.

The Role of Insurance in Debt Renegotiation: Evidence from Mortgage Market

This paper studies the effects of debt insurance on the likelihood of debt renegotiation with the setting of mortgages. Mortgage insurance enables mortgage holders to potentially get compensation for the loss in mortgage investment resulting from borrower’s default and subsequent liquidation. If a mortgage loan becomes delinquent, the borrower may apply for mortgage modification. According to moral hazard theory, mortgage holders are less likely to accept mortgage modification if mortgages are guaranteed by mortgage insurance, because their loss can be paid by the insurance company. We empirically test this effect using datasets including detailed information of mortgage origination and performance. We find that higher insurance coverage leads to lower likelihood of modification and the magnitude of this moral hazard effect is significant. This paper is the first to test the role of debt insurance in debt renegotiation, not only in mortgage literature but also in general finance literature. It helps us better understand mortgage holders’ reluctance to modify mortgage loans, an important factor of the higher liquidation rate in the financial crisis.

Fiscal Austerity, Growth Prospects, and Sovereign CDS Spreads: The Eurozone and Beyond

This paper applies both conventional panel data models and a dynamic simultaneous equations model to analyze the impact of fiscal austerity and growth prospects along with other macro fundamentals on the pricing of sovereign credit default swaps (CDS) for a panel of 36 countries including the Eurozone. We find that austerity practice generally leads to an expectation of improved fiscal situations, which tends to help the CDS market grow more confidence in indebted sovereigns’ ability to service their debt. The public debt to GDP ratio and projected future output growth also play an important role in determining the prices of sovereign debt insurance. Our analyses further show that the behavior of CDS spreads is considerably affected by common time trends over the sample period.

Credit Default Swaps: Risk Hedge or Financial Weapon of Mass Destruction?

AbstractCredit default swaps (CDSs) are contracts between buyers and sellers of protection against default. They are a form of debt insurance, or more precisely derivatives contracts that investors buy to either insure against or profit from a default. In this way CDS contracts act as a form of debt insurance in that they provide a means of protection against credit risk. In the aftermath of the global financial crisis, the CDS earned the reputation of a ‘financial weapon of mass destruction’. Why? Is this charge justified? This paper shows that the reality is more complex: CDSs carry benefit as well as costs, and the risks associated with them can be mitigated through prudent supervision.

Synthetizing a debt guarantee: Super-replication versus utility approach

This paper compares two strategies for replicating a put option used to synthetize a debt guarantee contract. The first strategy, super-replication, while maintaining the portfolio value greater or equal to a target value, minimizes the transaction cost of replicating a debt insurance put option by using dynamic linear programming. The second strategy replicates this put option by maximizing the guarantor's expected utility. A comparative study shows that both strategies give better results than the Leland (1985) method. If we use a risk-adjusted performance metric, the utility-based method performs best when transaction costs are relatively low. When transaction costs are relatively high, the two strategies yield similar results and still outperform Leland's.

Global Melting Down: Us Vs the Rest of the World

The underlying causes leading to the crisis had been reported in business journals for many months before September 2008, with commentary about the financial stability of leading U.S. and European investment banks, insurance firms and mortgage banks consequent to the subprime mortgage crisis. Beginning with failures caused by misapplication of risk controls for bad debts and collateralization of debt insurance, large financial institutions in the United States and Europe faced a credit crisis and a slowdown in economic activity. The impacts rapidly developed and spread into a global shock resulting in a number of European bank failures and declines in various stock indexes, and large reductions in the market value of equities. The credit crisis was exacerbated by Section 128 of the Emergency Economic Stabilization Act of 2008 which allowed the Federal Reserve to pay interest on excess reserve requirement balances held on deposit from banks, removing the incentive for banks to extend credit instead of placing cash on deposit with the FRB. Moreover, the de-leveraging of financial institutions further accelerated the liquidity crisis, and a decrease in international trade. World political leaders and national ministers of finance and central bank directors have coordinated their efforts to reduce fears but the crisis is ongoing and continues to change, developing at the close of October into a currency crisis with investors transferring vast capital resources into stronger currencies such as the yen, the dollar and the Swiss franc, leading many emergent economies to seek aid from the International Monetary Fund.

Global Melting Down: Us Vs the Rest of the World

The underlying causes leading to the crisis had been reported in business journals for many months before September 2008, with commentary about the financial stability of leading U.S. and European investment banks, insurance firms and mortgage banks consequent to the subprime mortgage crisis. Beginning with failures caused by misapplication of risk controls for bad debts and collateralization of debt insurance, large financial institutions in the United States and Europe faced a credit crisis and a slowdown in economic activity. The impacts rapidly developed and spread into a global shock resulting in a number of European bank failures and declines in various stock indexes, and large reductions in the market value of equities. The credit crisis was exacerbated by Section 128 of the Emergency Economic Stabilization Act of 2008 which allowed the Federal Reserve to pay interest on excess reserve requirement balances held on deposit from banks, removing the incentive for banks to extend credit instead of placing cash on deposit with the FRB. Moreover, the de-leveraging of financial institutions further accelerated the liquidity crisis, and a decrease in international trade. World political leaders and national ministers of finance and central bank directors have coordinated their efforts to reduce fears but the crisis is ongoing and continues to change, developing at the close of October into a currency crisis with investors transferring vast capital resources into stronger currencies such as the yen, the dollar and the Swiss franc, leading many emergent economies to seek aid from the International Monetary Fund.

Negative Reality of the HIV Positives: Integrating Mental Health in Welfare Evaluation

Using primary household data we estimate family utility function parameters that measure the relative importance of consumption, schooling of children and health (both physical and mental) and find that mental health is far more important than consumption or children's schooling in determining household utility. We then estimate the monetary equivalent of the welfare loss to an HIV family to be Rs. 65,690 per month. Aggregating to the all India level we find that the annual welfare loss due to the only 0.9% prevalence of HIV/AIDS is a staggering 3,800 billion rupees per year, which is about two and a half times the annual health expenditure of the country in 2004 and 13.4% of its GDP! This huge magnitude is not surprising as it includes private valuation of one's own life as well as the cost of stigma for being HIV positive. In addition, the annual loss from external transfers (through debt, dissavings and social insurance) account for 5% of annual health expenditure and 0.23% of GDP. The significance of mental health can be gauged from the fact that had we not included it in the family welfare analysis, the welfare loss would have been just about 0.067% of GDP.

The science of conjecture: evidence and probability before Pascal

Chapter 1 The Ancient Law of Proof: Egypt and Mesopotamia The Talmud Roman Law Proof and Presumptions Indian Law. Chapter 2 The Medieval Law of Evidence: Suspicion, Half-proof, and the Inquisition Dark Age Ordeals The Gregorian Revolution The Glossators Invent Half-Proof Presumptions in Canon Law Grades of Evidence and Torture The Postglossators Bartolus and Baldus The Competed Theory The Inquisition Law in the East. Chapter 3 Renaissance Law: Henry VIII Presumed Wed Tudor Treason Trials Continental Laws - The Treatises on Presumptions The Witch Inquisitors English Legal Theory and the Reasonable Man. Chapter 4 The Doubting Conscience and Moral Certainty: Penance and Doubts The Doctrine of Probabilism Suarez: Negative and Positive Doubt Grotius, Silhon, and the Morality of the State Hobbes and the Risk of Attack The Scandal of Laxism English Casuists Pursue the Middle Way Juan Caramuel Lobkowitz, Prince of Laxists Pascal's Provincial Letters. Chapter 5 Rhetoric, Logic, Theory: The Greek Vocabulary of Probability The Sophists and the Art of Persuasion Aristotle's Rhetoric and Logic The Rhetoric to Alexander Roman Rhetoric: Cicero and Quintilian Islamic Logic The Scholastic Dialectical Syllogism Probability in Ordinary Language Humanist Rhetoric Late Scholastic Logic. Chapter 6 Hard Science: Observation and Theory Aristotle's Not-by-Chance Argument Averaging of Observations in Greek Astronomy The Simplicity of Theories Nicole Oresme on Relative Frequency Copernicus Kepler Harmonizes Observations Galileo on the Probability of Copernican Hypothesis. Chapter 7 Soft Science and History: The Physiognomics Divination and Astrology The Empiric School of Medicine on Drug Testing The Talmud and Maimonides on Majorities Vernacular Averaging and Quality Control Experimentation in Biology The Authority of Histories The Authenticity of Documents Valla and the Donation of Constantine Cano and the Signs of True Histories. Chapter 8 Philosophy: Action and Induction Carneades's Mitigated Skepticism The Epicureans on Inference from Signs Inductive Skepticism and Avicenna's Reply Aquinas on Tendencies Scotus and Ockham on Induction Nicholas of Autrecourt The Decline of the West Bacon and Descartes - Certainty? or Moral Certainty? The Jesuits and Hobbes on Induction Pascal's Deductivist Philosophy of Science. Chapter 9 Religion: Laws of God, Laws of Nature The Argument from Design The Church Fathers Inductive Skepticism by Revelation John of Salisbury Maimonides on Creation Are Laws of Nature Necessary? The Reasonableness of Christianity Pascal's Wager. Chapter 10 Aleatory Contracts: Insurance, Annuities, and Bets The Price of Peril Doubtful Claims in Jewish Law Olivi on Usury and Future Profits Pricing Life Annuities Speculation in Public Debt Insurance Rates Renaissance Bets and Speculation Lots and Lotteries Commerce and the Casuists.

Debt insurance: What are the rules?

Banks in Insurance ReportVolume 16, Issue 5 p. 6-8 Article Debt insurance: What are the rules? First published: 02 January 2008 https://doi.org/10.1002/bir.3820160504AboutPDF ToolsRequest permissionExport citationAdd to favoritesTrack citation ShareShare Give accessShare full text accessShare full-text accessPlease review our Terms and Conditions of Use and check box below to share full-text version of article.I have read and accept the Wiley Online Library Terms and Conditions of UseShareable LinkUse the link below to share a full-text version of this article with your friends and colleagues. Learn more.Copy URL Share a linkShare onFacebookTwitterLinked InRedditWechat No abstract is available for this article. Volume16, Issue5September 2000Pages 6-8 RelatedInformation

International Institutions for Reducing Global Financial Instability

This paper asks how recent developments in research on banking and sovereign lending can help inform the debate on choosing a new international financial architecture. A broad range of plans is considered, including a global lender of last resort facility, an international bankruptcy court, an international debt insurance corporation, and unilateral controls on capital flows. One common failing of the main plans that have been proposed is that they fail to confront the biases in the existing system towards debt finance and bank intermediation, at the expense of equity finance and direct investment.

Bond ratings, debt insurance, and hospital operating performance

In this study, the operating performances of not-for-profit community hospitals are compared among groups partitioned by bond ratings, level of debt insurance coverage, and number of bond rating services. The analysis indicates that the performances of hospitals with full debt insurance coverage resulting in AAA ratings are significantly lower than those of hospitals with partial debt insurance and with AA ratings or better. Indeed, the hospitals with full debt insurance resemble those with partial insurance that are rated BBB to A. These findings have implications for managerial action choices. Hospitals seeking external funding to improve their operating performance may consider the costs and benefits of full insurance coverage.

Bond ratings, debt insurance, and hospital operating performance

Health Care Management Review (HCMR) disseminates state-of-the-art knowledge about management, leadership, and administration of health care systems, organizations, and agencies. Multidisciplinary and international in scope, articles present completed research relevant to health care management, leadership, and administration, as well report on rigorous evaluations of health care management innovations, or provide a synthesis of prior research that results in evidence-based health care management practice recommendations. Articles are theory-driven and translate findings into implications and recommendations for health care administrators, researchers, and faculty. Annually, HCMR publishes the Best Theory to Practice paper chosen by the Health Care Administration Division of the Academy of Management.

The Effectiveness of Debt Insurance as a Valid Signal of Bond Quality: Comment

The lemons principle, as delineated by Akerlof (1970), predicts that bad products drive good products from the marketplace when knowledge asymmetrically distributed between buyers and sellers. Various theories of market signaling, based on Spence's (1973, 1978) insights, predict that sellers of good products in such an environment undertake some costly activities designed specifically signal buyers that they offer products of high quality. Such a phenomenon presumed occur in the market for municipal bond insurance, where bond issuers with a relatively low probability of default exit from the debt insurance market, while bond issuers with a relatively high probability of default enter the insurance market and obtain debt insurance enhance the marketability and credit quality of the issue. Although market signaling now widely accepted as a consequence of hidden knowledge, empirical tests for this phenomenon are rare. Thus, the article in this journal by Hsueh and Liu (1990) was prospectively a welcome contribution. The article, however, mistakenly mixed the how to literature of identifying high probability of default issuers of municipal debt with the what is literature of insurance markets theory. On the one hand, the authors state that their primary contribution test the signaling role of private debt insurance, where signaling defined in the context of Thakor (1982) as that activity which undertaken by issuers with high default probabilities who want signal outside investors a quality higher than if they remained out of the debt insurance market. On the other hand, the authors conclude that neither a separating nor a pooling equilibrium exists in the market for debt insurance. This comment aims disentangle the definition of signaling proposed by Hsueh and Liu from that commonly associated with equilibrium configurations in insurance markets with asymmetric information. I argue that their

The Effectiveness of Debt Insurance as a Valid Signal of Bond Quality: Reply

The Effectiveness of Debt Insurance as a Valid Signal of Bond Quality: Reply