Recovery assumptions

The pricing of credit default swaps is determined in the credit default swap market by traders who determine the credit default swap spread through their assessment of the default risk of the reference obligations. This spread information can give valuable information about the key pricing components of the reference credit implied probability of default of the reference credit and recovery assumptions. These price... 

However, for a variety of technical reasons investors may prefer bond positions rather than CDS. These include a voice in bankruptcy proceedings, liquidity, internal funding costs, recovery assumptions, and others. 

We know from the discussion above that adjusting this loss estimate by a recovery assumption will leave us with a probability of default. Since... 

Discounted Ca.sh Flows. Because the flows below the cash flow box in Figure 1 tend to be arbitrary management decisions that are generally difficult to predict, the prediction of profitabiUty is based on the expected cash flows instead of earnings. As a result, some logical assumptions to account for the cost of capital and the recovery of the investment must be made. 

Net Present Va.Iue, Each of the net annual cash flows can be discounted to the present time using a discount factor for the number of years involved. The discounted flows are then all at the same time point and can be combined. The sum of these discounted net flows is called the net present value (NPV), a popular profit criterion. Because the discounted positive flows first offset the negative investment flows in the NPV summation, the investment capital is recovered if the NPV is greater than zero. This early recovery of the investment does not correspond to typical capital recovery patterns, but gives a conservative and systematic assumption for investment recovery. 

Of course it should always be remembered that the solutions obtained in this way are only approximate since the assumptions regarding linearity of relationships in the derivation of equation (2.64) are inapplicable as the stress levels increase. Also in most cases recovery occurs more quickly than is predicted by assuming it is a reversal of creep. Nevertheless this approach does give a useful approximation to the strains resulting from complex stress systems and as stated earlier the results are sufficiently accurate for most practical purposes. 

To obtain a better understanding of the reaction mechanism, some compounds that are considered to he intermediates were subjected to the reaction. Various reaction courses can be considered as illustrated in Fig. 21. Path A a-Methyltropic acid is oxidized to a-phenyl-a-methylmalonic acid. Then, the malonate is converted to optically active a-phenylpropionate hy arylmalonate decarboxylase. In order to confirm this assumption, incubation of the malonic acid with Rhodococcus sp. was carried out. The result obtained was the total recovery of the substrate, indicating that no decarboxylase is present in this bacterium. Path B a-Methyltropic acid is converted to racemic a-phenylpropionic acid, which is deracemized to optically active propionic acid. To examine the possibility of this route, racemic a-phenylpropionic acid was subjected to the reaction to observe... 

To validate the analytical procedure recovery experiments are performed. To this end, the CRM is spiked with a known mass of the analytes at a variety of concentration levels (at least three different levels) and the concentrations measured are compared to the expected concentrations in at least three separate experiments. The extraction step has been shown to be a critical step in the analytical procedure and it may be responsible for poor recoveries. The efficiency of this step can be assessed either by repetitive extraction of the sample or by the addition of internal standards prior to the extraction step with the assumption that the latter actually represent the behavior of the analytes of interest. 

The basic assumption was made that the solute recovery was constant and independent of both the feed concentration and 9. This is only a reasonable assumption for high values of solute recovery where the flux of solute is inherently very low. 

However, the assumptions of the present system have some important draw backs. The impact of incineration, with energy recovery, is overestimated because burdens of incineration are completely attributed to the waste treatment of cushion vinyl floor covering while none is attributed to the production of energy, which is a co-function of the waste incineration. 

The recovery percentages of coal and solvent (BI/ coal fed, BS/solvent fed, respectively) calculated based on the above assumption are summarized in Table 4. They were more than 85% except for the significantly low value for the coal recovery when hydropyrene was used as the solvent. In the latter case, some extent of the coal may be converted into the benzene soluble. Nevertheless, analyses of BS and BI fractions may inform the structural change of coal and solvent after the liquefaction. 

Different estimates of the ultimately recoverable resources lead to different time windows for the mid-depletion point of oil. Estimates of the EUR at country level can differ, for instance, because of different boundaries between conventional and unconventional occurrences, and depend on assumptions about recovery factors,... 

If the values for all the factors are known and expressed in common units, this equation will provide a reasonable estimate of flow from recovery wells. The difficulty of actual application of this equation is the determination of the water-oil saturation in the aquifer matrix (thus, the relative permeability). The equation assumes a steady-state flow setting. In a dynamic situation where the oil reserves are being depleted and water-oil mixtures are variable, it is almost impossible (from an economic point of view) to use these equations precisely. However, inclusion of some assumptions based on results of the initial site investigation can often be of assistance in initial spacing of recovery wells and estimating recovery rates. 

This phase separation suggests a new approach to the problem of tertiary oil recovery. We can use such binary systems to dissolve the oil at low temperature and then recover a good part of the oil simply by raising the temperature some 20 to 30 degrees. This is based on the assumption that, at high temperature, ternary systems will also tend to separate into two phases, one of which would be very rich in oil. This should be especially useful for the lighter... 

---