In “Confucianism and Same-Sex Marriage,” published recently in Politics and Religion, Professor Tongdong Bai argues for a “moderate Confucian position on same-sex marriage,” one that supports its legalization and yet endeavors “to use public opinion and social and political policies to encourage heterosexual marriages, and to prevent same-sex marriages from becoming the majority form of marriages” (Bai 2021:146). Against the backdrop of downright homophobia prevalent among vocal Confucians in mainland China today, Bai claims that his pro-legalization rendition “show[s] a different (...) version of Confucianism that challenges the received perception of Confucianism that it is deeply conservative, a perception that often lies at the core of the rejection of its contemporary relevance, especially by the so-called ‘liberals’ in China and elsewhere” (Bai 2021:133). Furthermore, Bai claims that his moderate Confucianism is normatively preferrable to “the typical liberal or individualist position” of a marriage equality supporter, because the specter of polygamy – the conservative trope of invoking polygamy as a reductio ad absurdum against same-sex marriage – imposes “a serious challenge” to liberals but not to moderate Confucians (Bai 2021:146, 153). -/- Both of Bai’s claims falter upon scrutiny, however. Granted, it is applaudable that Bai tries to dissuade his more conservative Confucian colleagues from opposing the legalization of same-sex marriage. But as Section 1 of this Response will show, the alternative rendition of Confucianism he presents, along with the way he presents it, is premised on a highly contested conception of what shared Confucian values are; does injustice to Confucians who embrace marriage equality more unreservedly (i.e., without caveats à la Bai); fails to produce new arguments that “enrich the theoretical basis for same-sex marriage” (Bai 2021:133); and, ironically, reinforces – rather than “challenges” – the “received perception” of Confucianism as deeply conservative. Meanwhile, Section 2 will show that Bai’s comparison between liberalism and moderate Confucianism relies both upon an apparent unfamiliarity with the extensive and nuanced liberal discussions on polygamy, and upon fallacious methods of assessing comparative normative valence. -/- Finally, Section 3 will offer some concluding thoughts from the perspective of decolonial theory, examining the dynamic of spectacularized postcoloniality that propels the production and consumption of dubious theoretical projects like Bai’s. As it turns out, this case serves not only as a cautionary tale of how not to conduct comparative normative theorizing, but also as a cautionary tale of how not to let the spectacle of postcoloniality derail the pursuit of academic decolonization. (shrink)

This paper presents a new model for pricing OTC derivatives subject to collateralization. It allows for collateral posting adhering to bankruptcy laws. As such, the model can back out the market price of a collateralized contract. This framework is very useful for valuing outstanding derivatives. Using a unique dataset, we find empirical evidence that credit risk alone is not overly important in determining credit-related spreads. Only accounting for both collateral arrangement and credit risk can sufficiently explain unsecured credit costs. This (...) finding suggests that failure to properly account for collateralization may result in significant mispricing of derivatives. We also empirically gauge the impact of collateral agreements on risk measurements. Our findings indicate that there are important interactions between market and credit risk. (shrink)

According to an attractive conception of love as attention, discussed by Iris Murdoch, one strives to see one’s beloved accurately and justly. A puzzle for understanding how to love another in this way emerges in cases where more accurate and just perception of the beloved only reveals his flaws and vices, and where the beloved, in awareness of this, strives to escape the gaze of others - including, or perhaps especially, of his loved ones. Though less attentive forms of love (...) may be able to render one’s continued love coherent and justifiable in these cases, they risk further alienating the beloved precisely because they are less attentive and because of the operations of the beloved’s shame. I argue that attentive love is well-suited to alleviate this problem of alienation, but that in order to do so, it must be supplemented with grace. I propose a conception of gracious love as an affectionate love for the qualities of human nature, distinguishing this from a love of humanity, and show how this complex emotion, in being responsive to the complexities of shame, is able to alleviate the problem of alienation. (shrink)

This paper calls for a paradigm shift in studying academic dependency, towards the paradigm of brokered dependency. Using Chinese academia as an example, I demonstrate how the neocolonial condition of academic dependency is always mediated through blockage-brokerage mechanisms. The two most salient blockage-brokerage mechanisms of dependency in the Chinese context are linguistic barrier and authoritarian malepistemization, and the effects of the latter consist of three layers: institutional, informational and incorporational. On top of their domestic impacts, those mechanisms jointly exacerbate spectacularized (...) postcoloniality in anglophone-hegemonic global academic publishing. The paradigm of brokered dependency not only represents a more nuanced approach to the study of academic dependency, but also underscores the fact that the dismantling of the neocolonial condition cannot be conceived and pursued in isolation from comprehending and confronting the authoritarian condition, especially when the latter pertains under the disguise of anticolonialism. (shrink)

In the world of Avatar: The Last Airbender (ATLA) and The Legend of Korra (LOK) —let’s call it the Bending World—some people (“benders”) are endowed with telekinetic superpowers to maneuver surrounding objects without physical interaction, by mentally steering (“bending”) one of the four classical “elements of nature” composing the objects: air, fire, water, and earth. Perhaps, in a world where the fundamental laws of nature are radically different from those of our world, the fundamental conditions and manifestations of politics should (...) be radically different too. That, of course, is not to deny that political bodies familiar to us are depicted in ATLA and LOK: tribes, monarchies, autonomous townships, city-states, loose federations, colonial empires, and democracies. Despite those familiar depictions, however, it’s worth contemplating how the existence of supernatural power might fundamentally alter the norms and rationales of politics—and how it might in turn help us better understand our own political reality. (shrink)

This article presents a comprehensive framework for valuing financial instruments subject to credit risk. In particular, we focus on the impact of default dependence on asset pricing, as correlated default risk is one of the most pervasive threats in financial markets. We analyze how swap rates are affected by bilateral counterparty credit risk, and how CDS spreads depend on the trilateral credit risk of the buyer, seller, and reference entity in a contract. Moreover, we study the effect of collateralization on (...) valuation, since the majority of OTC derivatives are collateralized. The model shows that a fully collateralized swap is risk-free, whereas a fully collateralized CDS is not equivalent to a risk-free one. (shrink)

As with certain other self-reflexive emotions, such as guilt and shame, our understanding of self-hatred may be aided by views of the mind which posit an internalized other whose perspective on oneself embodies and focuses a set of concerns and values, and whose perspective one is in some sense vulnerable to. To feel guilt for some transgression is not solely to feel the anger that one would feel toward another’s trespasses, now directed back onto oneself as an object of that (...) anger; it is at the same time to react to that anger – perhaps, for example, to accept it as deserved, or to welcome the lashing of one’s bad conscience. To feel shame before oneself is not just to see oneself in some compromising way, it is to feel compromised by one’s own gaze. Likewise, the person who hates herself does not feel the hatred that she might have for another, simply taking herself as object of that attitude. She is not merely the seat of an internalized hostile voice and perspective that she may, for example, react to with indifference. She does not only tell herself that she is “worthless” but, will typically feel herself so in response. And her suffering may not just result from pain she is inclined to inflict, but suffering that, in some sense, she is inclined to suffer. But how is this so? How, in self-hatred, does one become not only subject to, but vulnerable and even receptive to one’s own hostility? (shrink)

Parmenides expelled nonbeing from the realm of knowledge and forbade us to think or talk about it. But still there has been a long tradition of nay-sayings throughout the history of Western and Eastern philosophy. Are those philosophers talking about the same nonbeing or nothing? If not, how do their concepts of nothing differ from each other? Could there be different types of nothing? Surveying the traditional classifications of nothing or nonbeing in the East and West have led me to (...) develop a typology of nothing that consists of three main types: 1) privative nothing, commonly known as absence; 2) negative nothing, the altogether not or absolute nothing; and finally 3) original nothing, the nothing that is equivalent to being. I will test my threefold typology of nothing by comparing the similarities and differences between the conceptions of nothing in Heidegger, Daoism and Buddhism. With this study, I hope that I will clarify some confusion in the understanding of nothing in Heidegger, Daoism and Buddhism, and shed light on the central philosophical issue of “what there is not”. (shrink)

Ratio, Volume 34, Issue 4, Page 303-311, December 2021.

This article presents a generic model for pricing financial derivatives subject to counterparty credit risk. Both unilateral and bilateral types of credit risks are considered. Our study shows that credit risk should be modeled as American style options in most cases, which require a backward induction valuation. To correct a common mistake in the literature, we emphasize that the market value of a defaultable derivative is actually a risky value rather than a risk-free value. Credit value adjustment (CVA) is also (...) elaborated. A practical framework is developed for pricing defaultable derivatives and calculating their CVAs at a portfolio level. (shrink)

L.A. Paul argues that “transformative experiences” challenge our hopes to live up to an ideal that she believes is upheld within western, wealthy cultures. If these experiences reveal information to us about the world and ourselves that is in principle unavailable to us before we undergo them, it seems that there is no hope for us to be rational, authentic and autonomous masters of our own lives. Supposing that Paul is right about this, how concerned should we be? Here, I (...) challenge the ideal of "rational mastery" that guides Paul’s project, and which must be granted in order to motivate the philosophical challenge purportedly generated by experiences that drastically change who we are and what we know. (shrink)

The guise of the good thesis can be understood as an attempt to distinguish between human motivations that are intelligible as desires and those that are not. I propose, first, that we understand the intelligibility at stake here as the kind necessary for the experience of reactive attitudes, both negative and positive, to the behavior and motivations of an agent. Given this, I argue that the thesis must be understood as proposing substantive content restrictions on how human agents perceive objects (...) of their desires; it cannot be a purely formal constraint. Moreover, while proponents of the guise of the good thesis who posit substantive content restrictions on human desire are right to do so, they are mistaken to claim that we always desire the apparently good. Instead, I propose a different limit: the naturally attractive. This alternative to the guise of the good thesis nonetheless captures the compelling idea that human desires are intelligent, quasi-perceptual responses to the world. (shrink)

The one-side defaultable financial derivatives valuation problems have been studied extensively, but the valuation of bilateral derivatives with asymmetric credit qualities is still lacking convincing mechanism. This paper presents an analytical model for valuing derivatives subject to default by both counterparties. The default-free interest rates are modeled by the Market Models, while the default time is modeled by the reduced-form model as the first jump of a time-inhomogeneous Poisson process. All quantities modeled are market-observable. The closed-form solution gives us a (...) better understanding of the impact of the credit asymmetry on swap value, credit value adjustment, swap rate and swap spread. (shrink)

This paper attempts to assess the economic significance and implications of collateralization in different financial markets, which is essentially a matter of theoretical justification and empirical verification. We present a comprehensive theoretical framework that allows for collateralization adhering to bankruptcy laws. As such, the model can back out differences in asset prices due to collateralized counterparty risk. This framework is very useful for pricing outstanding defaultable financial contracts. By using a unique data set, we are able to achieve a clean (...) decomposition of prices into their credit risk factors. We find empirical evidence that counterparty risk is not overly important in credit-related spreads. Only the joint effects of collateralization and credit risk can sufficiently explain unsecured credit costs. This finding suggests that failure to properly account for collateralization may result in significant mispricing of financial contracts. We also analyze the difference between cleared and OTC markets. (shrink)

The incremental risk charge (IRC) is a new regulatory requirement from the Basel Committee in response to the recent financial crisis. Notably few models for IRC have been developed in the literature. This paper proposes a methodology consisting of two Monte Carlo simulations. The first Monte Carlo simulation simulates default, migration, and concentration in an integrated way. Combining with full re-valuation, the loss distribution at the first liquidity horizon for a subportfolio can be generated. The second Monte Carlo simulation is (...) the random draws based on the constant level of risk assumption. It convolutes the copies of the single loss distribution to produce one year loss distribution. The aggregation of different subportfolios with different liquidity horizons is addressed. Moreover, the methodology for equity is also included, even though it is optional in IRC. (shrink)

Philosophers are now wary of conflating the “fittingness” or accuracy of an emotion with any form of moral assessment of that emotion. Justin D’Arms and Daniel Jacobson, who originally cautioned against this “conflation”, also warned philosophers not to infer that an emotion is inaccurate from the fact that feeling it would be morally inappropriate, or that it is accurate from the fact that feeling it would be morally appropriate. Such inferences, they argue, risk committing “the moralistic fallacy”, a mistake they (...) claim is widespread throughout the work of contemporary and historical moral philosophers. I argue that many basic and familiar forms of moral assessment of the emotions are not subject to these arguments. I illustrate this by reconsidering the idea that to assess an emotion as “fitting” is to assess it as what a virtuous person would feel. After showing how assessments akin to this “virtue-theoretical” notion of fit may be prevalent even outside of the Aristotelian tradition, I suggest some more charitable and philosophically productive interpretations of the philosophical views of the emotions that D’Arms and Jacobson criticize, and argue that we cannot coherently theorize about the fittingness conditions of the emotions in a morally neutral way. (shrink)

The philosophy of historical sciences investigates their distinct objects of study, epistemic challenges, and methodological solutions. Rethinking astronomy in this light offers a contribution. First, the methodology of historical sciences adds to a more adequate description of how astronomers study and utilize token events. Second, astronomy faces a typical difficulty in identifying traces of some past events and has developed a delicate solution. This enriches the idea of trace and suggests a methodology that relies on iterations between data-driven approaches and (...) theory-driven approaches, together with the cross-validation between multiple relevant historical events or datasets. (shrink)

On one predominant conception of virtue, the virtuous agent is, among other things, wholehearted in doing what she believes best. I challenge this condition of wholeheartedness by making explicit the connections between the emotion of boredom and the states of continence and akrasia. An easily bored person is more susceptible to these forms of disharmony because of two familiar characteristics of boredom. First, that we can be – and often are – bored by what it is that we know would (...) be best to do, and second, that occurrent states of boredom tend to give rise to positive interest in performing actions that we know are bad to perform. Moreover, while a person’s susceptibility to boredom can indicate a lack of attentiveness or acuity, or be evidence of a vice such as ingratitude or shallowness, it can in others indicate positive qualities of character, such as perspicacity, liveliness, and certain forms of intelligence. Upon imagining certain bored akratics without the psychological qualities that give rise to their boredom, we will either imagine them without these positive qualities, or with others that – though perhaps psychologically possible – are not clearly better. This yields the result that a person who is continent or even akratic because of her susceptibility to boredom may have a character no less excellent than that of the wholehearted agent. (shrink)

Recent years have seen a surge of interest in implicit bias. Driving this concern is the thesis, apparently established by tests such as the IAT, that people who hold egalitarian explicit attitudes and beliefs, are often influenced by implicit mental processes that operate independently from, and are largely insensitive to, their explicit attitudes. We argue that implicit bias testing in social and empirical psychology does not, and without a fundamental shift in focus could not, establish this startling thesis. We suggest (...) that implicit bias research has been conducted in light of inadequate theories of racism and sexism. As a result, such testing has not sufficiently controlled for subjects’ prejudiced explicit beliefs and emotions, and has not ruled out the possibility that explicit prejudice best explains test subjects’ discriminatory associations and behavior. (shrink)

A combinatorial analysis of intrinsicality takes intrinsic properties to be independent of accompaniment: a property is intrinsic only if it is possible for a lonely or an accompanied thing to have it or lack it (I). Cameron argues that the combinatorial analysis in Langton & Lewis (1998) faces an epistemic circularity, which makes (I) suspicious. In this paper, I examine two approaches to free the combinatorial analyses from the circularity and find them all fail. Then I provide an outline of (...) an argument for (I) by appealing to the grounding analyses of intrinsicality, which shows an advantage of the grounding analyses over the combinatorial ones. (shrink)

Chinese international students who studied in the United States received “double stigmatization” from American and Chinese authorities because of the “political othering” tactic during COVID-19. The research used a phenomenological approach to examine why and how specifically the transnational identity of Chinese international students in the United States shifted during the double stigmatization. The researcher conducted a total of three rounds of interviews with 15 Chinese international students who studied in the United States and returned to China between 2018 and (...) 2020, which culminated in 45 interviews through a longitudinal study to probe the transnational identities of this population before and during the double stigmatization; the study also examined how the mindsponge mechanism worked during the identity shifts and the interplay among stigmatization, transnational identity shifts, and the mindsponge mechanism. The study concluded that before COVID-19, Chinese international students had been stigmatized in both China and the United States. (shrink)

To act akratically is to act, knowingly, against what you judge is best for you to do, and it is traditionally assumed that to do this is to be weak-willed. Some have rejected this identification of akrasia and weakness of will, arguing that the latter is instead best understood as a matter of abandoning one's reasonable resolutions. This paper also rejects the identification of akrasia and weakness of will, but argues that this alternative conception is too broad, and that weakness (...) of will is best understood in relation to certain kinds of pain and pleasure. Moreover, the phenomenon of strong-willed akrasia, cases in which a person must exhibit strength of will to do precisely what she judges she should not do, suggests that strength of will is an executive virtue, and that being weak-willed is just one way (among others) in which a person can fail to manifest this virtue. (shrink)

This study deals with the tensions between old and new Yogācāra, as seen in the Huayan sources, which, in turn, reflect discontinuity between Indian Yogācāra and its reception in China. Its particular focus is on the concept of karmic appearance , as developed in the Awakening of Faith and further elaborated on by many Huayanmasters. This concept illustrates the sudden arising of deluded thoughts and provides us with a paradigm for the approach to the problem of delusion, a problem that (...) is deeply rooted in Tathāgatagarbha Thought and addresses the origin of deluded thoughts against the backdrop of the pure mind. This Huayan solution resembles the concept of free will, as developed in mainstream Christian theology after Augustine attempted to solve the problem of evil, and the concept of playfulness found in Indian Vedānta theology to explain the creation of the illusory world. (shrink)

ABSTRACT What is the ethical significance of the suffering of nonhuman animals? For many, the answer is simple. Such suffering has clear moral significance: nonhuman animal suffering is suffering, suffering is something bad, and the fact that it is bad gives us reason to alleviate or prevent it. The practical problem that remains is how to do this most efficiently or effectively. I argue that this does not exhaust the ethical significance of certain evils, once we consider how the existence (...) of those evils may detract from the meaning of human life, even on fully “naturalistic” conceptions of meaning in life. I will draw a distinction between what I will call “spiritual” problems and “moral” problems and consider why moral philosophers may be well suited to addressing both problems, as long as the domain of the ethical is not taken to be exhausted by the domain of the moral. Finally, I will elaborate on why marking a distinction between these problems—the moral and the spiritual—may help illuminate some disagreements between Utilitarians and their opponents about the ethical significance of the suffering of nonhuman animals. (shrink)

Both motivational internalism and externalism need to explain why sometimes moral judgments tend to motivate us. In this paper, I argue that Dreier’ second-order desire model cannot be a plausible externalist alternative to explain the connection between moral judgments and motivation. I explain that the relevant second-order desire is merely a constitutive requirement of rationality because that desire makes a set of desires more unified and coherent. As a rational agent with the relevant second-order desire is disposed towards coherence, she (...) will have some motivation to act in accordance with her moral judgments. Dreier’s second-order desire model thus collapses into a form of internalism and cannot be a plausible externalist option to explain the connection between moral judgments and motivation. (shrink)

The present paper discusses some concepts and materials that may be linked to Īśvarasena’s theory of non-cognition. These include the concept of feiliang 非量 as found in the writings of Dharmapāla, Asvabhāva, Jinaputra and their Chinese counterparts, and apramāṇatā (or apramāṇatva), as found in the works of Dharmakīrti and his commentators. I shall demonstrate that the two concepts in many ways mirror the theory of three pramāṇas, proposed by Īśvarasena. As most of these materials are from the sixth to eighth (...) century, they are extremely helpful for clarifying the early development of the theory of non-cognition and filling gaps in our understanding of the early development of this theory. (shrink)

The present paper explores some pre-Vibhāṣika sources including the Kathāvatthu, *Śāriputrābhidharma, and Vijñānakāya. These sources suggest an early origin of the concept of the cognition of nonexistent objects (asad-ālambana-jñāna) among the Mahāsāṃghikas and some of its sub-schools. These scattered sources also indicate some different aspects of this theory from that held by the Dārṣṭāntikas and the Sautrāntikas. In particular, some Mahāsāṃghika arguments for the cognition of nonexistent objects reveal how a soteriologically-oriented issue gradually develops into a sophisticated philosophical concept.

Among various opinions in the controversy over the the cognition of non-existent objects (asad-ālambana-vijñāna) among various Buddhist and Indian philosophical schools or in the debate on the objectless presentations (gegenstandslose Vorstellungen) happened in the early development of phenomenology and analytic philosophy, I find that Dharmakīrti and Husserl hold similar views. Both of them have less interest in redefining the ontological status of nonexistent objects than Russell and Meinong. Rather they engage themselves in analyzing the experiential structure of negative cognition and (...) come up with a similar conclusion that negative judgments presuppose affirmative perceptions. This study will enrich our understanding of both thinkers. (shrink)

Objectives: The growing rate of retraction of scientific publications has attracted much attention within the academic community, but there is little knowledge about the nature of such retractions in schizophrenia-related research. This study aimed to analyze the characteristics of retractions of schizophrenia-related publications.

Nutrient losses from sloping farmland in karst areas lead to the decline in land productivity and nonpoint source pollution. A specially tailored steel channel with an adjustable slope and underground hole fissures was used to simulate the microenvironment of the "dual structure" of the surface and underground of sloping farmland in a karst area. The artificial rainfall simulation method was used to explore the surface and underground runoff characteristics and nutrient losses from sloping farmland under different rainfall intensities. The effect (...) of rainfall intensity on the nutrient loss of farmland on karst sloping land was clarified. The results showed that the surface was the main route of runoff and nutrient loss during the rainy season on sloping farmland in karst areas. The influence of rainfall intensity on the nutrients in surface runoff was more substantial than that on underground runoff nutrients. Nutrient loss was more likely to occur underground than on the surface. The losses of total nitrogen, total phosphorus, and total potassium in surface and underground runoff initially increased and then gradually stabilized with the extension of rainfall duration and increased with increasing rainfall intensity and the amount of nutrient runoff. The output of nutrients through surface runoff accounted for a high proportion of the total, and underground runoff was responsible for a low proportion. Although the amount of nutrients output by underground runoff was small, it could directly cause groundwater pollution. The research results provide a theoretical reference for controlling land source pollution from sloping farming in karst areas. (shrink)

Lack of a historical sense is the hereditary defect of philosophers. … So what is needed from now on is historical philosophizing, and with it the virtue of modesty.

This paper presents a Least Square Monte Carlo approach for accurately calculating credit value adjustment (CVA). In contrast to previous studies, the model relies on the probability distribution of a default time/jump rather than the default time itself, as the default time is usually inaccessible. As such, the model can achieve a high order of accuracy with a relatively easy implementation. We find that the valuation of a defaultable derivative is normally determined via backward induction when their payoffs could be (...) positive or negative. Moreover, the model can naturally capture wrong or right way risk. (shrink)

Introduction: The development of advanced sewage technologies empowers the industry to produce high-quality recycled water, which greatly influences human’s life and health. Thus, this study investigates the mechanism of individuals’ adoption of recycled water from the technology adoption perspective. -/- Methods: Employing the mixed method of structural equation modeling and artificial neural network analysis, we examined a research model developed from the extended Unified Theory of Acceptance and Use of Technology (UTAUT2) framework. To examine the research model, this study employs (...) a leading web-survey company (Sojump) to collect 308 valid samples from the residents in mainland China. -/- Results: The structural equation modeling results verified the associations between the six predictors (performance expectancy, effort expectancy, social influence, facilitating conditions, environmental motivation, and price value), individuals’ cognitive and emotional attitudes, and acceptance intention. The artificial neural network analysis validates and complements the structural equation modeling results by unveiling the importance rank of the significant determinants of the acceptance decisions. -/- Discussion: The study provides theoretical implications for recycled water research and useful insights for practitioners and policymakers to reduce the environmental hazards of water scarcity. (shrink)

During the lifetime of a structured product, payment events and cancellation events mainly affect the value of the option. This article presents a model for pricing generic cancellable option. The model is used to build most common kinds of cancellation schedules and compute the cancellation probability.

In this thesis, I explore motivational internalism and externalism, which concern the relationship between moral judgments and motivation. I first introduce the basic terms and different forms of internalism and externalism, including the externalist objections to internalism based on the famous counterexamples. I then argue against externalism by defending and developing Michael Smith’s fetishism argument. I not only respond to the externalist objections to the fetishism argument but also further argue against different externalist explanations of moral motivation that intend to (...) avoid the fetishism charge. Finally, I re-examine different forms of internalism in order to argue for a new form of internalism that can better preserve our internalist intuitions whilst accommodating the externalist counterexamples. My ultimate conclusion will be that the most plausible form of internalism to accept is constitutional, unconditional, relatively strong, direct internalism that is formulated in terms of dispositional desires. (shrink)

This paper argues that the reduced-form jump diffusion model may not be appropriate for credit risk modeling. To correctly value hybrid defaultable financial instruments, e.g., convertible bonds, we present a new framework that relies on the probability distribution of a default jump rather than the default jump itself, as the default jump is usually inaccessible. As such, the model can back out the market prices of convertible bonds. A prevailing belief in the market is that convertible arbitrage is mainly due (...) to convertible underpricing. Empirically, however, we do not find evidence supporting the underpricing hypothesis. Instead, we find that convertibles have relatively large positive gammas. As a typical convertible arbitrage strategy employs delta-neutral hedging, a large positive gamma can make the portfolio highly profitable, especially for a large movement in the underlying stock price. (shrink)

This paper presents a new model for valuing hybrid defaultable financial instruments, such as, convertible bonds. In contrast to previous studies, the model relies on the probability distribution of a default jump rather than the default jump itself, as the default jump is usually inaccessible. As such, the model can back out the market prices of convertible bonds. A prevailing belief in the market is that convertible arbitrage is mainly due to convertible underpricing. Empirically, however, we do not find evidence (...) supporting the underpricing hypothesis. Instead, we find that convertibles have relatively large positive gammas. As a typical convertible arbitrage strategy employs delta-neutral hedging, a large positive gamma can make the portfolio highly profitable, especially for a large movement in the underlying stock price. (shrink)

This article presents a new model for valuing a credit default swap (CDS) contract that is affected by multiple credit risks of the buyer, seller and reference entity. We show that default dependency has a significant impact on asset pricing. In fact, correlated default risk is one of the most pervasive threats in financial markets. We also show that a fully collateralized CDS is not equivalent to a risk-free one. In other words, full collateralization cannot eliminate counterparty risk completely in (...) the CDS market. (shrink)

Equity-linked securities with a guaranteed return become popular in a volatile market environment. This paper presents a new model for valuing guaranteed equity-linked notes. We consider a security whose value depends on the performance of a basket of equities averaged over certain points in time, but that is floored by a guaranteed amount. We show that the security’s price is given by the sum of the guaranteed amount plus the price of an Asian style option on the basket above. The (...) model provides analytical formulas for the security’s price as well as for corresponding hedge ratios; these respective formulas appear to be accurate over a wide range of underlying security parameter values, based on numerical testing against a Monte Carlo benchmark, Finally, we apply our method to value a type of segregated fund with a maturity guarantee. (shrink)

The LIBOR Market Model has become one of the most popular models for pricing interest rate products. It is commonly believed that Monte-Carlo simulation is the only viable method available for the LIBOR Market Model. In this article, however, we propose a lattice approach to price interest rate products within the LIBOR Market Model by introducing a shifted forward measure and several novel fast drift approximation methods. This model should achieve the best performance without losing much accuracy. Moreover, the calibration (...) is almost automatic and it is simple and easy to implement. Adding this model to the valuation toolkit is actually quite useful; especially for risk management or in the case there is a need for a quick turnaround. (shrink)

In this essay, we will follow Tang Junyi’s lead in exploring issues related to Chinese diaspora and Chinese philosophy. While we largely endorse Tang’s call for overseas Chinese to establish themselves in their adopted lands, we will argue for a more nuanced view on the identity of Chinese people outside China: they are not marginalized individuals scattered out of “homeland” China, rather they are people legitimately established in their own respective countries. In this connection, we will also advance a view (...) of future Chinese philosophy as a world philosophy that takes roots in China as well as in the world at large. In our view, although Chinese immigrant thinkers in the past century have played a major role in promoting Chinese philosophy outside China, the importance of such a role is likely to decline along with the success of Chinese philosophy becoming a world philosophy. (shrink)

This article presents a new methodology for pricing and hedging commodity derivatives. A generic model calibration is provided. The calibration procedure consists of an offline step where the mean reversion rates, the ratio of the long and short factor volatilities and the correlation between the long and short factors are determined via historical analysis. This offline step is performed relatively infrequently. There’s also an online step of the calibration which happens every time the model is used to price an option (...) or to simulate price paths. Empirical study shows that the model is quite accurate. (shrink)

Ang papel ay paglalagom ng itinuturing na pinakamahalagang yugto ng buhay ni José Rizal—ang kanyang pagkakatapon sa Dapitan, sa lente ng konseptong “bagani” ng ating mga ninuno. Sa pagbanggit sa lang nauna nang pag-aaral ukol kay Rizal, ipapakitang kung papaanong ang yugto sa Dapitan ay ang katuparan ng kanyang mga layunin sa La Liga Filipina, na kanyang isinabuhay kasama ang bayan. Sa lente ng kasalukuyang pandemyang COVID 19, makikita natin na tila naranasan din ni Rizal sa kanyang pagkakatapon ang ilang (...) bagay na ating dinaranas ngayon, na tila siya isang frontliner na nasa lockdown, inilagay sa kuwarentena, nag-homeschooling, nagkaroon ng lockdown sickness at namahagi ng ayudang pangkabuhayan sa mga mamamayan ng isang natutulog na bayan upang ito ay sumiglang muli. Nawa ay maging inspirasyon sa bayan na anuman ang hamon at mga balakid, walang makapipigil sa isang Pilipino na magsilbi sa bayan gamit ang kanyang mga talento at manatiling liwanag ng katotohanan at kaalaman. (shrink)

Saturated free fatty acids-induced hepatocyte lipoapoptosis plays a pivotal role in non-alcoholic steatohepatitis. Theactivation of endoplasmic reticulum (ER) stress isinvolved in hepatocyte lipoapoptosis induced by thesaturated free fatty acidpalmitate (PA). However, the underlying mechanismsof the role of ER stress in hepatocyte lipoapoptosis remain largely unclear.In this study, we showed that PA and tunicamycin (Tun), a classic ER stress inducer, resulted in differential activation of ERstress pathways. Our data revealed that PA inducedchronic and persistent ER stress response, but Tuninduced acute and (...) transientER stress response. (shrink)

This article presents a new model for valuing financial contracts subject to credit risk and collateralization. Examples include the valuation of a credit default swap (CDS) contract that is affected by the trilateral credit risk of the buyer, seller and reference entity. We show that default dependency has a significant impact on asset pricing. In fact, correlated default risk is one of the most pervasive threats in financial markets. We also show that a fully collateralized CDS is not equivalent to (...) a risk-free one. In other words, full collateralization cannot eliminate counterparty risk completely in the CDS market. (shrink)