Weighted average recovery rates

High-yield defaults in Europe in both 2001 and 2002 produced weighted average recovery rates significantly below US historical averages. Investors recovered just 11% of par value on 2001 defaults and 15% of par on 2002 defaults. In the United States, recovery rates on... 

September 2002. Hence, investors lost approximately 86% of par value on 2001 and 2002 defanlts. In the United States, the weighted average recovery rates were 30% of par in 2001 and 23% of par in 2002. Excluding fallen angel defanlts though, which in 2001 boosted average recovery rates and in 2002 depressed recovery rates, US recovery rates were just 15% of par in 2001 and had improved to 28% of par in 2002. 

In the short-term, industry default rates are also valuable by highlighting pockets of weakness in the broader market. For example, investors with material exposures to the telecommunication sector either in the United States or in Europe experienced severe losses in 2001 and 2002. For the nine-month period ending September 2002, the European telecommunication sector produced a default rate of 30%. The US rate for the sector was 38.5%. Furthermore, the weighted average recovery... 

Therefore, using the assumed recovery rate, we may calculate the cash flows of the bond under each of the possible scenarios. For any given yield r, we can then calculate the present value of the bond s cash flows for each of these scenarios. These are denoted by PVi, PV2,. .., PVt- and PV +i. Letp(r) be the probability-weighted average for aU the possible scenarios, shown by Equation (8.5) ... 

AATCC Test Method 128-1999 determines the tendency of fabrics to wrinkle under carefully controlled laboratory conditions. Fabrics made from any fiber or fiber combination can be evaluated. A special apparatus (AATCC wrinkle tester) provides consistent wrinkling force to the 15 x 28 cm preconditioned fabric samples with a 3500-g weight. After being wrinkled for 20 min, the samples are allowed to hang vertically for 24 h under standard conditions and then compared to plastic replicas (AATCC three-dimensional wrinkle recovery replicas) to obtain a smoothness rating on a 1-5 scale. An average of nine determinations is reported. 

Table IV is a summary based upon the total elemental recovery concentrations of calcium and magnesium leached from the five stone samples, their equivalent carbonate weights, and the total average sample leaching rate (normalized for surface area and rain depth) ...

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