Reference rate

A first kind of these insurance products are called "catastrophe bonds" and consist in securitizing environmental risks in bonds, which could be sold to high-yield investors. The catastrophe bonds are able to transfer risk to investors that receive coupons that are normally a reference rate plus an appropriate risk premium. By these products, insurance companies limit risk exposure transferring natural catastrophe risk into the capital markets. In this way, with the involvement of the financial markets, their global size offers enormous potential for insurers to diversify risks. 

The accuracy of the results, however, depends critically on knowing enough of the mechanistic details of the reaction system to be sure that the kinetic analysis, which is not always straightforward in complex systems, is valid. Furthermore, obtaining an accurate rate constant from the rate constant ratio (kl/k2) requires accurate knowledge of the second, reference rate constant. 

The mortality of 221 workers in a di(2-ethylhexyl) phthalate production plant in Germany was followed between 1940 and 1976. Most subjects (135/221) were hired after 1965 and the process was completely enclosed in 1966. No information on level of exposure was provided. Information on vital status for foreigners [number not stated] was obtained for only 55% of them, but appeared to be complete for the remaining cohort. Reference rates were obtained from local populations (the city of Ludwigshafen, the Rheinhessen-Pfalz land) and national rates. Altogether, eight deaths... 

Quadratic Dynamic Matrix Control Qualitative Process Automation fractional weighting factor in EWMA regression correlation coefficient reference rate of resin curing... 

Table I. Rate constants for the reaction of OH with DMSO obtained in 760 Torr synthetic air at 298 K. For reference rate constants k2 see text. The errors are 1 a and refer to precision only...

Oxidation rate constant k, for gas-phase second order rate constants, koH for reaction with OH radical, kND3 with N03 radical and kQ3 with 03 or as indicated, data at other temperatures see reference rate constant for the reaction with OH- k = (2.5 0.3) x H)6 M-1 s-1 was measured in 66.7% dioxane-water at 35.7°C (Hine et al. 1956 quoted, Roberts et al. 1992) koH = 1.11 x 10 13 cm3 molecule-1 s-1 with atmospheric lifetime x = 0.43 yr at 298 K, measured range 277-377 K (flash photolysis resonance fluorescence and discharge flow electron paramagnetic resonance, Orkin et al. 1997)... 

Some rate constant determinations depend on a knowledge of the reaction mechanism and/or data on the rates of competing reactions. When new information on these features becomes available it is possible to reanalyse old data if it is presented in sufficient detail. For example, rate constants derived from a measurement of a rate constant ratio can easily be recalculated when new values of the reference rate constant are pub-... 

To gain insight into the structure of the dimensionless reaction-hased design equations, recall tiie definition of the characteristic reaction time, Eq. 3.5.1, ter = Co/ro. It follows that the scaling factor is ta/Cq) = I/tq, where tq is the reference rate of a selected chemical reaction. Substituting fliis relation into Eqs. 4.4.4,... 

As reaction rates are often expressed in a modified Arrhenius form, simple approaches like those based on linear free energy relationships, such as Evans-Polanyi, are adopted (Susnow et al., 1997). Automatic generators usually refer to thermochemical kinetics methods (Benson, 1976) and the kinetic parameters rely on a limited number of reference rate constants and are extended to all the reactions of specific classes adopting analogy rules (Battin-LeClerc et al., 2000 Ranzi et al., 1995). Recently, extensive adoption of ab initio calculations of activation energies and reaction rates are adopted (Saeys et al., 2003, 2004, 2006). 

Summary of alterations to cell or organ elongation rate in relation to hormone-induced (auxin and cytokinin) alterations of CMT orientation. Rates were either increased or decreased with respect to some reference rate, and the CMTs became reoriented (— ) from random (R) or longitudinal/oblique (L/O) to transverse (T) with respect to the cell axis, or vice versa. The filled circle ( ) indicates the report of a particular correlation, the open circle (O) that such a correlation has not been found the numbers indicate the reference in which these findings are mentioned. The data are from seedling shoot tissues of various species (both monocot and dicot) treated with auxin (references [16,18,19,21-26]) or, in one case, cytokinin (reference [16])... 

Figure 18.5 Rate-limiting processes in film formation (a) separation of film formation into water ev oration and particle deformation and compaction components, (b) effect of drying conditions on film formation. Bold dashed lines reference rates of processes in (a). Bold solid lines boundary of the limiting film-formation processes at low and high temperature. Light dashed lines possible shifts of film-forming process rates from the reference rates by, for example, plasticization of the latex particles and/or slowing of the water evaporation rate. Points A, B, C and D represent the MFTs resulting from these variations in conditions. (Reproduced with permission from Sperry et al. [53].)...

Using this relationship, we build the yield curve by obtaining the relevant reference rate for regular intervals on the term structure, and then obtaining the discount factors for each point along the term structure. This set of discount factors is then used to extract the yield curve. 

Reference rate 210 10.4 Other features of floating-rate ... 

A fixed-rate bond pays fixed coupons during the bond s life known with certainty. Conversely, a floating-rate note ox floater pays variable coupons linked to a reference rate. This makes the coupon payments uncertain. The main pim-pose of this debt instrument is to hedge the risk of rising interest rates. Although the financial crisis and liquidity provided by central banks have decreased the level of interest rates, they will at some point of course rise in future years. 

The coupon payment is determined by two main components, the reference rate... 

Coupon rate = reference rate -f quoted margin... 

As introduced, the reference rate represents the interest rate or index used to obtain the linkage. In the European market, the major parts of floating-rate note issuances are linked to the Euribor and the remaining to the constant maturity swap. In the US and UK markets, they are tied to the Libor and short-term treasury bonds. 

Another way to calculate the yield return is the discounted margin. It differs from the simple margin because the first one amortizes the bond s premium or discount at a constantly compounded rate. The main disadvantage of this method is that it requires estimation of the reference rate over the bond s life. Assuming a bond paying semi-annual coupons, the discounted margin is given by (10.5) ... 

Index duration Measuring the price sensitivity to change of reference rate only ... 

Moreover, duration will be influenced by the floater s stmcture. In fact, the choice of the reference rate affects the duration depending on how much volatile the index is. The lower the frequency of couptm payments, the greater the price sensitivity between reset dates. Thus, while floating-rate notes have a lower price sensitivity to a change of the reference rate, fixed and floating-rate notes both have a price sensitivity to changes of credit spread reflecting the issuer s creditworthiness. A shift of the credit term structure will determine the decline of the bond s price. 

Floating-rate notes can include additional features. One example is the inclusion of cap, floor and collar clauses. A floater with cap feature means that the reference rate cannot overcome the threshold rate defined in the indenture. Usually the threshold is expressed in terms of coupon, that is after a coupon threshold (e.g. 6%, reference rate plus quoted margin) the investor receives at maximum the cap level. In this case, the floater is not completely covered by rising interest rates, in which after the threshold the floater trades as a conventional bond. In contrast, a floater with a floor feature represents the minimum coupon level that an investor can receive, hedging to the downside risk of interest rates. If the bond includes both cap and floor, this feature is known as collar or collared floating-rate note. The bond can include also a drop-lock feature that after a threshold it ceases to float. 

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