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Featured Application: This research has important applications in areas such as smart furniture and human-computer interaction. It will bring people a more efficient and comfortable living experience as well as a new smart experience.  Human action recognition has many application prospects in human-computer interactions, innovative furniture, healthcare, and other fields. The traditional human motion recognition methods have limitations in privacy protection, complex environments, and multi-person scenarios. Millimeter-wave radar has attracted attention due to its ultra-high resolution and all-weather operation. Many existing studies have discussed the application of millimeter-wave radar in single-person scenarios, but only some have addressed the problem of action recognition in multi-person scenarios. This paper uses a commercial millimeter-wave radar device for human action recognition in multi-person scenarios. In order to solve the problems of severe interference and complex target segmentation in multiplayer scenarios, we propose a filtering method based on millimeter-wave inter-frame differences to filter the collected human point cloud data. We then use the DBSCAN algorithm and the Hungarian algorithm to segment the target, and finally input the data into a neural network for classification. The classification accuracy of the system proposed in this paper reaches 92.2% in multi-person scenarios through experimental tests with the five actions we set. [ABSTRACT FROM AUTHOR]

This study investigates the determinants of trading activity in the U.S. corporate bond market, focusing on the effects of Seasonal Affective Disorder (SAD) and macroeconomic announcements. Employing the General-to-Specific (Gets) Autometrics methodology, we identify distinct behavioral responses between retail and institutional investors to SAD, noting a significant impact on retail trading volumes but not on institutional trading or bond returns. This discovery extends the understanding of behavioral finance within the context of bond markets, diverging from established findings in equity and Treasury markets. Additionally, our analysis delineates the influence of macroeconomic announcements on trading activities, offering new insights into the market's reaction to economic news. This study's findings contribute to the broader literature on market microstructure and behavioral finance, providing empirical evidence on the interplay between psychological factors and macroeconomic information flow within corporate bond markets. By addressing these specific aspects with rigorous econometric techniques, our research enhances the comprehension of trading dynamics in less transparent markets, offering valuable perspectives for academics, investors, risk managers, and policymakers. [ABSTRACT FROM AUTHOR]

Featured Application: Papermaking and printing industry, usability, i.e., legibility of printed text. Invasive alien plant species (IAPS) may cause threats to native biodiversity in ecosystems. Researchers have been investigating all the possible ways that they can be used effectively for other purposes. Since IAPS are capable of forming cellulose fibre nets, in this research, papers were made from three different types of IAPS (Japanese knotweed, giant goldenrod, and black locust). This research examined these IAPS papers and their effectiveness when used as printing substrates. In comparison to commercial office paper, the differences in basic, surface, optical, and microscopic properties were measured. As a widely used technology, inkjet printing was applied. We tested a commonly used sans-serif typeface (which has been established as being more legible than other typefaces in previous research) in three different type sizes (i.e., 8, 10, and 12 pt). According to the results, paper made from IAPS could offer some usable properties and acceptable legibility, especially when printing typefaces with specific attributes, such as moderate counter size, higher x-height, and minimal differences in the letter stroke width, are used. An appropriate typographic tonal density should be achieved in combination with an adequate letter size, e.g., 10 pt type size when a sans-serif typeface is used. [ABSTRACT FROM AUTHOR]

In this paper, we propose an extended credit migration model with asymmetric fixed boundaries and multiple ratings, for a more precise depiction of credit changes in the real world. A model with three ratings is established and analyzed as an example, and then the results are generalized to a general multirating form model. We prepare the model meaningfully by arranging the asymmetric boundaries in a suitable order. A PDE system problem is deduced, and the existence and uniqueness of the solution for the problem are obtained using PDE techniques, which further ensure the rationality of the model. Due to the flexible configuration of asymmetric boundaries, the multirating model has various types of structures in the buffer zones where the credit rating keeps its original state. For instance, the two buffers in the three-rating model may be separated, connected, or intersected, as presented in the numerical results for different boundary parameters. [ABSTRACT FROM AUTHOR]

The present study aimed to investigate an alternative evaporative cooling pad material made from mangosteen peel (MP) waste. Mangosteen peels were used to fill a 150 mm thick mesh container with a packing density of 180 kg/m3. A wind tunnel was constructed and utilized to experimentally evaluate the cooling performance of this organic-waste-based pad under hot and humid conditions (31–34 °C and 55–70% RH). The performance parameters assessed included pressure drop, temperature drop, saturation effectiveness, cooling capacity, and coefficient of performance (COP). The influence of air velocity (0.7, 1.0, 1.4, and 1.8 m/s) on these parameters was also examined. The results revealed that the saturation effectiveness of the MP pad ranged from 53% to 77% within the considered air velocity range. The maximum temperature drop (4.6 °C), saturation effectiveness (77%), cooling capacity (0.6 kW), and COP (3.5) were achieved when the system operated at 1.4 m/s. A comparative study showed that, at this velocity, the MP pad provided performance nearly equivalent to that of the commercial cellulose paper pad, except for the pressure drop. This result affirms the potential of mangosteen peels as a suitable wet medium for evaporative cooling applications. [ABSTRACT FROM AUTHOR]

Using daily closing price observations between November 2017 and February 2023, this paper documents how the shocks of a cryptocurrency ETF resonate with ETFs representing traditional asset classes in terms of price and volatility. We find price transmission from the cryptocurrency ETF into the ETFs of several currencies, small-cap equities, and inflation. Risk propagation from the cryptocurrency ETF flows toward ETFs constituted of equities of various sizes, oil prices, high-yield corporate bonds, and inflation. There is scant evidence of transmission from ETFs with underlying conventional assets into the cryptocurrency ETF. The findings bear implications for low-cost risk management strategies. [ABSTRACT FROM AUTHOR]

The current study explores the problem of illiquidity in the corporate bond market globally and proposes a solution to enhance liquidity by studying various dimensions of liquidity. Purpose: The purpose of this paper is to propose a solution to the global issue of illiquidity in the corporate bond market. The problem has been identified by many researchers and this paper attempts to find a viable solution in the "fungibility route" as an alternative to the "liquidity route". Design/Methodology: An analysis of a sample size of 234,772 trade data of corporate bonds and a sample size of 2,00,607 trade data of G-securities is performed to identify the problem. Findings/Solution proposed: A mathematical model based on the credit risk differential and sensitivity differential is proposed to find out the fair value at which an illiquid bond can be exchanged with a liquid bond. To arrive at the fair value of the illiquid bond, we have calculated the risk-adjusted yield (RAY) using the modified duration and a credit risk differential. Originality: This research is a pioneering effort in addressing the worldwide issue of corporate bond illiquidity by proposing a novel solution. The proposed strategy aims to improve the liquidity of the bond indirectly, by utilizing the fungibility route. [ABSTRACT FROM AUTHOR]

There is currently a lack of scientific reports on the use of composites based on UDMA resin containing HAp in conservative dentistry. The aim of this study was therefore to determine the effect of hydroxyapatite content on the properties of a hybrid composite used in conservative dentistry. This paper compares a commercial hybrid composite with experimental composites treated with 2% by weight (b/w), 5% b/w, and 8% b/w hydroxyapatite. The composites were subjected to bending strength, compression, and diametrical compression tests, as well as those for impact strength, hardness, and tribological wear. The obtained results were subjected to statistical analysis. Increased hydroxyapatite was found to weaken the mechanical properties; however, 2% b/w and 5% b/w hydroxyapatite powder was found to achieve acceptable results. The statistical analysis showed no significant differences. HAp is an effective treatment for composites when applied at a low concentration. Further research is needed to identify an appropriate size of HAp particles that can be introduced into a composite to adequately activate the surface and modification its composition. [ABSTRACT FROM AUTHOR]

The aim of this study was to develop bio-based adhesives that can be used for various packaging papers. In addition to commercial paper samples, papers produced from harmful plant species in Europe, such as Japanese Knotweed and Canadian Goldenrod, were used. In this research, methods were developed to produce bio-based adhesive solutions in combinations of tannic acid, chitosan, and shellac. The results showed that the viscosity and adhesive strength of the adhesives were best in solutions with added tannic acid and shellac. The tensile strength with adhesives of tannic acid and chitosan was 30% better than with commercial adhesives and 23% for combinations of shellac and chitosan. For paper from Japanese Knotweed and Canadian Goldenrod, the most durable adhesive was pure shellac. Because the surface morphology of the invasive plant papers was more open and had numerous pores compared to the commercial papers, the adhesives penetrated the paper structure and filled the voids. There was less adhesive on the surface and the commercial papers achieved better adhesive properties. As expected, the bio-based adhesives also showed an increase in peel strength and exhibited favorable thermal stability. In summary, these physical properties support the use of bio-based adhesives use in different packaging applications. [ABSTRACT FROM AUTHOR]

The green bond market helps to mobilize financial sources toward sustainable investments. Green bonds are similar to conventional bonds but are specifically designed to raise money to finance environmental projects. The feature of green bonds is the existence of greenium, or the lower yield compared to "conventional" bonds of the same risk. The relevance of the paper is underpinned by the mixed evidence on the existence of 'greenium', especially in corporate green bond markets; there has been limited research on the topic and a narrow focus on global, US, or Chinese green bond markets. Instead, the greenium in European debt markets remains underexplored. The objective of this study is to investigate the existence of greenium and its key determinants in European corporate debt capital markets, including the local markets of the United Kingdom (UK), France, Netherlands, and Germany. The sample included 3851 corporate bonds, both green and conventional ones, between 2007 and 2021 from 33 European countries. Linear regression was applied for the analysis. The results show that the climate corporate bonds in Europe are priced at a discount to the same-risk conventional corporate bonds. The magnitude of greenium is around 3 bps. Determinants of greenium include the presence of an ESG rating and belonging to the utility and financial industry. The remaining drivers of bond yields in the European corporate debt market are the credit quality (expressed by the level of credit rating), the coupon size, the bond tenor, the market liquidity, and macroeconomic variables (growth of gross domestic product and consumer price index). For the local corporate debt markets, our results are controversial. In all markets under consideration except for the UK and the Netherlands, we did not find sustainable evidence of greenium. The results of the research lead to a better understanding of the green bond market for investors, researchers, regulators, and potential issuing companies. [ABSTRACT FROM AUTHOR]

Porous 3D composite materials are interesting anode electrodes for single chamber microbial fuel cells (SCMFCs) since they exploit a surface layer that is able to achieve the correct biocompatibility for the proliferation of electroactive bacteria and have an inner charge transfer element that favors electron transfer and improves the electrochemical activity of microorganisms. The crucial step is to fine-tune the continuous porosity inside the anode electrode, thus enhancing the bacterial growth, adhesion, and proliferation, and the substrate's transport and waste products removal, avoiding pore clogging. To this purpose, a novel approach to synthetize a 3D composite aerogel is proposed in the present work. A 3D composite aerogel, based on polydimethylsiloxane (PDMS) and multi-wall carbon nanotubes (MWCNTs) as a conductive filler, was obtained by pouring this mixture over the commercial sugar, used as removable template to induce and tune the hierarchical continuous porosity into final nanostructures. In this scenario, the granularity of the sugar directly affects the porosities distribution inside the 3D composite aerogel, as confirmed by the morphological characterizations implemented. We demonstrated the capability to realize a high-performance bioelectrode, which showed a 3D porous structure characterized by a high surface area typical of aerogel materials, the required biocompatibility for bacterial proliferations, and an improved electron pathway inside it. Indeed, SCMFCs with 3D composite aerogel achieved current densities of (691.7 ± 9.5) mA m−2, three orders of magnitude higher than commercial carbon paper, (287.8 ± 16.1) mA m−2. [ABSTRACT FROM AUTHOR]

This work investigates and compares the total risk attributable to holding and operating companies, using data from the United States. By proxying overall risk by the option-adjusted spread on corporate bonds, we hypothesize that operating companies face a higher risk. Our data were obtained from Bloomberg and comprise 17,800 corporate bonds. Our methodology entails stratified univariate comparisons of the means of the option-adjusted spreads of sub-samples of operating companies versus holding companies. The principal bases of stratification are issue size, bond maturity, and creditworthiness proxied by the Standard and Poor ratings. With very few exceptions, our results report insignificant t-statistics, thus making us unable to reject the null hypothesis that the operating companies have the same business risk as holding companies. When bond rating, maturity, and size are controlled, there is no consistent cost reduction attributable to holding companies, and contrary to common belief, this is more visible for smaller firms. Our work suggests that there is no evidence consistently favoring holding-company financing compared to operating ones. [ABSTRACT FROM AUTHOR]

Street commerce is the basic unit of urban structure and an important part of people's life. With the continuous advancement of online commerce, people's consumption habits and consumption patterns have begun to change. (1) Background: During the epidemic, the global business environment changed dramatically, and traditional street business has also been hit hard, leaving a lot of idle space. The question is how to solve the problem of activating the commercial street space after its decay, and realize its sustainable development. (2) Methods: This paper takes the commercial space of Nonglin Street as the object, constructs the relevant factors affecting the commercial space of the street by using the theory of scenes, and collects the data by means of a field investigation and questionnaire. According to a weight analysis and satisfaction analysis, the advantages and disadvantages of the commerce in Nonglin Street are understood. (3) Results: The importance of the three variables of the appearance, comfort and diversity of the commercial space in Nonglin Street is very high and the satisfaction is low. (4) Conclusions: Nonglin Street need to increase diversified forms of business, open block space, integrate regional cultural symbols, and improve the management model of street commerce. [ABSTRACT FROM AUTHOR]

Herein, we loaded cobalt-based zeolite imidazolate frameworks, ZIF-67 (Co), onto commercial filter paper to prepare catalytic filter paper (ZFP) for the in situ degradation of bisphenol A (BPA) in water by activating peroxymonosulfate. The results showed that ZIF-67 (Co) was densely and uniformly distributed on the surface of the filter paper. The prepared ZFP could effectively degrade BPA in situ through a gravity-driven filtration process. Specifically, when the flow rate of the BPA solution passing through ZFP was lower than 10 mL/min, 0.02 mM of BPA could be completely degraded by ZFP. Furthermore, ZFP showed promising water matrix adaptability, which could provide promising BPA degradation efficiency in a wide pH range or in the existence of multiple anions. The scavenging tests demonstrated that both sulfate radical and hydroxyl radical were generated for BPA degradation, in which hydroxyl radical was the dominant active species. The ZFP also exhibited promising long-time use stability with a high mineralization rate. This study provides a novel method to prepare high-efficient catalyst paper for the in situ organic pollutant removal in water media via a prompt filtration process. [ABSTRACT FROM AUTHOR]

This paper aims to examine the connectedness between green and conventional assets, particularly during the period of economic downturn. Specifically, we examine quantile-based time-varying connectedness between the green bond market and other financial assets using quantile vector autoregression (QVAR) from 9 March 2018 to 10 March 2021. We use daily prices of S&P U.S. Treasury Bond Index, S&P US Aggregate Bond Index, S&P US Treasury Bond Current 10Y Index, S&P 500 Bond Index, S&P 500 Financials index, S&P 500 Energy Bond Index and S&P 500, giving a total of 784 observations, and using Composite Index as a representative of conventional assets classes and S&P Green Bond Index to denote the green bond market. Results shows the connectedness between green bonds and the conventional asset classes intensified during the outbreak of the Coronavirus pandemic (COVID-19) as investors shifted their investment towards fixed income assets due to the plunge in the prices of stocks and commodities. The results also shows that green bonds are strongly connected with treasury bonds, aggregate bonds and bond index, as they share similarities with respect to issuance, risk and governance. Connectedness is weak in the case of composite index and energy bond index, as their prices do not have substantial influence on the green bond market. The study highlights the hedging and diversification benefits of green bonds. We have several implications for portfolio managers, policy makers and researchers. [ABSTRACT FROM AUTHOR]

China's bond market has been ranked third globally; however, China's corporate bonds are significantly less liquid than its stocks. Liquidity risk is an important component in China's corporate bond spreads. In this paper, we propose a stochastic liquidity discount factor model to evaluate the liquidity risk premium and its term structure in China's corporate bond market. The Monte Carlo simulation technique is used to quantify the impact on the liquidity premium of various liquidity factors: the liquidity level, liquidity volatility, liquidity shock, and the liquidity elasticity. Our findings conclude that the liquidity level is the most significant component of a liquidity premium. The impact on the liquidity premium of other liquidity factors is all conditional on the liquidity level. In addition, the impact of liquidity shocks and volatility is also subject to the market's equilibrium mechanism. Further, the term of a bond affects the premium both directly and indirectly through its influence on a bond's liquidity. [ABSTRACT FROM AUTHOR]

While previous academic research highlights the potential of machine learning and big data for predicting corporate bond recovery rates, the operations management challenge is to identify the relevant predictive variables and the appropriate model. In this paper, we use meta-learning to combine the predictions from 20 candidates of linear, nonlinear and rule-based algorithms, and we exploit a data set of predictors including security-specific factors, macro-financial indicators and measures of economic uncertainty. We find that the most promising approach consists of model combinations trained on security-specific characteristics and a limited number of well-identified, theoretically sound recovery rate determinants, including uncertainty measures. Our research provides useful indications for practitioners and regulators targeting more reliable risk measures in designing micro- and macro-prudential policies. [ABSTRACT FROM AUTHOR]

The green bond market is emerging as an impactful financing mechanism in climate change mitigation efforts. The effectiveness of the financial market for this transition to a low-carbon economy depends on attracting investors and removing financial market roadblocks. This paper investigates the differential bond performance of green vs non-green bonds with (1) a dynamic portfolio model that integrates negative as well as positive externality effects and via (2) econometric analyses of aggregate green bond and corporate energy time-series indices; as well as a cross-sectional set of individual bonds issued between 1 January 2017, and 1 October 2020. The asset pricing model demonstrates that, in the long-run, the positive externalities of green bonds benefit the economy through positive social returns. We use a deterministic and a stochastic version of the dynamic portfolio approach to obtain model-driven results and evaluate those through our empirical evidence using harmonic estimations. The econometric analysis of this study focuses on volatility and the risk–return performance (Sharpe ratio) of green and non-green bonds, and extends recent econometric studies that focused on yield differentials of green and non-green bonds. A modified Sharpe ratio analysis, cross-sectional methods, harmonic estimations, bond pairing estimations, as well as regression tree methodology, indicate that green bonds tend to show lower volatility and deliver superior Sharpe ratios (while the evidence for green premia is mixed). As a result, green bond investment can protect investors and portfolios from oil price and business cycle fluctuations, and stabilize portfolio returns and volatility. Policymakers are encouraged to make use of the financial benefits of green instruments and increase the financial flows towards sustainable economic activities to accelerate a low-carbon transition. [ABSTRACT FROM AUTHOR]

The Polish corporate bond market does not have a history as long as the American one, however, it is characterized by stable annual growth. The growth of the market is related to the growth of its liquidity and is determined by a number of entities, both on the demand and the supply side. The aim of the study was to present the structure of the Catalyst market and bond trading in Poland. The study also discusses the market's development and identifies the factors that determine this development. Based on reports concerning trading on the Catalyst market, a huge growth was noticed in the 10 years since the market's establishment. Forecasts indicate that the growth will continue. The outbreak of the SARS-CoV-2 pandemic will cause the market development to be slower than the model's forecast, although the data for the first nine months of 2020 suggest that the upward trend will be maintained. Moreover, for the market to continue to thrive, a rating must be compulsory for corporate bond issuers. A comparison of the ratings of individual issuers enables investors to analyze the risk and profitability of corporate bonds in an easier way. [ABSTRACT FROM AUTHOR]

In this study we examine the volatility-adjusted 60/40 rule at the individual company level. We document that strong diversification benefits exist over the long-term, and that both the equity and corporate bonds exhibit positive expected drifts. For our sample of 30 large-cap companies, given that corporate bond positions have shown less volatility than the equity position, we leveraged the resultant portfolio of 60/40 to match that of the equity position. When we compare the two investments, we document an outperformance of 100 to 200 bps per year, even after we account for the leverage costs of 100 bps. We believe our work will open up a new risk investing paradigm for those seeking long-term advantages. [ABSTRACT FROM AUTHOR]

Using an international sample of corporate Green bond issuances over the recent period, this paper highlights the potential consequences of the issuance of a Green bond on the issuer's financial performance. Starting with a first sample of 2079 Green bond issuances of 190 unique issuers from 2009 to 2018, we investigate only corporate green bond issuances. Our final sample contains 475 green bonds issued by 145 unique firms. We find that the market reacts negatively to the announcement of green bond issuances. In particular, results show that the stock market reacts on the day of the green bond announcement date and the day after, and that the cumulative abnormal return is between -0.5% and -0.2%, depending on the asset pricing model (CAPM, the 3-factor Fama and French models, and the 4-factor Carhart models). This effect is mainly noticeable at the first Green Bond issuance and in developed markets. Our results provide evidence that the investors react in the same manner for Green bonds as for conventional or convertible bonds. This evidence suggests that green debt offerings convey unfavorable information about the issuing firms. [ABSTRACT FROM AUTHOR]

Using an aggregate credit spread index, we find that it has substantial predictive power for corporate bond returns over short and long horizons. The return predictability is economically and statistically significant and robust to various controls. The credit spread index and its components have more predictive power for bond returns than conventional default and term spreads. When decomposing the credit spread index into investment- and speculative-grade components, the latter has more predictive power for future bond returns. The source of the index's predictive power is from its ability to forecast future economic conditions. [ABSTRACT FROM AUTHOR]

Measures of corporate credit risk incorporate compensation for unpredictable future changes in the credit environment and compensation for expected default losses. Since the launch of purchases of government securities and corporate securities by the European Central Bank, it has been discussed whether the observed reduction in corporate credit risk was due to the decrease in risk aversion favored by the monetary easing or by expectations of lower losses due to corporate defaults. This work introduces a new methodology to break down the factors that drive corporate credit risk, namely the premium linked to cyclical and monetary conditions and that linked to the restructuring of the companies. Untangling these two components makes it possible to quantify the drivers of excess returns in the corporate bond market. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of annual report readability on the corporate bond market. My findings indicate that in the US corporate bond market, firms with less readable annual reports tend to have higher credit spreads, higher credit spread volatilities, higher transaction costs, higher transaction costs volatility, smaller trade size, higher number of trades and higher number of trades volatility. This paper also provides the first answers to the question as to whether annual report readability matters to international market participants in the corporate bond market. My findings provide evidence that in the EUR corporate bond market, firms with more readable annual reports are associated with lower credit spreads. [ABSTRACT FROM AUTHOR]

Undoubtedly, it is important to have an empirically effective credit risk rating method for decision-making in the financial industry, business, and even government. In our approach, for each corporate bond (CB) and its issuer, we first propose a credit risk rating (Crisk-rating) system with rating intervals for the standardized credit risk price spread (S-CRiPS) measure presented by Kariya et al. (2015), where credit information is based on the CRiPS measure, which is the difference between the CB price and its government bond (GB)-equivalent CB price. Second, for each Crisk-homogeneous class obtained through the Crisk-rating system, a term structure of default probability (TSDP) is derived via the CB-pricing model proposed in Kariya (2013), which transforms the Crisk level of each class into a default probability, showing the default likelihood over a future time horizon, in which 1545 Japanese CB prices, as of August 2010, are analyzed. To carry it out, the cross-sectional model of pricing government bonds with high empirical performance is required to get high-precision CRiPS and S-CRiPS measures. The effectiveness of our GB model and the S-CRiPS measure have been demonstrated with Japanese and United States GB prices in our papers and with an evaluation of the credit risk of the GBs of five countries in the EU and CBs issued by US energy firms in Kariya et al. (2016a, b). Our Crisk-rating system with rating intervals is tested with the distribution of the ratings of the 1545 CBs, a specific agency's credit rating, and the ratings of groups obtained via a three-stage cluster analysis. [ABSTRACT FROM AUTHOR]

This paper studies the link between secondary market liquidity for a corporate bond and the bond's yield spread at issuance. Using ex-ante measures of expected liquidity at the time of issuance, based on the characteristics of the underwriting syndicate, we find an economically large impact of liquidity on yield spreads. We estimate that a 10% increase in expected liquidity implies a decrease in the yield spread at issuance of between 8% and 14%. Our results suggest that liquidity has an important effect on firms' cost of capital, and they contribute to the literature which examines the impact of liquidity on asset prices. [ABSTRACT FROM AUTHOR]

In this paper, we consider a new corporate bond-pricing model with credit-rating migration risks and a stochastic interest rate. In the new model, the criterion for rating change is based on a predetermined ratio of the corporation's total asset and debt. Moreover, the rating changes are allowed to happen a finite number of times during the life-span of the bond. The volatility of a corporate bond price may have a jump when a credit rating for the bond is changed. Moreover, the volatility of the bond is also assumed to depend on the interest rate. This new model improves the previous existing bond models in which the rating change is only allowed to occur once with an interest-dependent volatility or multi-ratings with constant interest rate. By using a Feynman-Kac formula, we obtain a free boundary problem. Global existence and uniqueness are established when the interest rate follows a Vasicek's stochastic process. Calibration of the model parameters and some numerical calculations are shown. [ABSTRACT FROM AUTHOR]

This paper analyses the determinants of euro area non-financial corporate bonds since the early 2000s, so as to gauge deviations from the law of one price. We decompose the spread between the yield of German, French, Italian and Spanish corporate bonds vis-à-vis the German Bund of similar maturity into country, credit and duration risk premia components via dummy regressions. We highlight three main findings. First, the initial phase of the financial crisis (2008-2009) caused an overall increase in credit risk premia. Since the beginning of 2013 credit risk premia are back to levels comparable to those preceding the financial crisis. Second, at the height of the euro area sovereign crisis (2011-2012), high credit risk premia were accompanied by strong and persistent signs of market fragmentation in Italy and Spain (but not in France). This fragmentation has reached its peak in the second half of 2012 and has started to recede only after the announcement of the OMT. Third, we provide a simple measure of financial integration across the big 4 member states of the euro area. [ABSTRACT FROM AUTHOR]

Corporate credit ratings remove the information asymmetry between lenders and borrowers to find an equilibrium price. Structured finance ratings, however, are informationally insufficient because the systematic risk of equally rated assets can vary substantially. As I demonstrate in a Monte Carlo analysis, highly-rated structured finance bonds can exhibit far higher non-linear systematic risks than lowly-rated corporate bonds. I value credit instruments under a four-moment CAPM, between and within some markets there is no one-to-one relation between expected loss (rating) and credit spread (pricing). The linear CAPM beta is insufficient, buyers and sellers need also the same information on non-linear risk to have an equilibrium. [ABSTRACT FROM AUTHOR]

Credit risk rating is shown to be a relevant determinant in order to estimate good corporate governance and to self-optimize capital structure. The conclusion is argued from a study on a selected (and justified) sample of (182) companies listed on the Shanghai Stock Exchange (SHSE) and the Shenzhen Stock Exchange (SZSE) and which use the same Shanghai Brilliance Credit Rating & Investors Service Company (SBCR) assessment criteria, for their credit ratings, from 2010 to 2015. Practically, 3 debt ratios are examined in terms of 11 characteristic variables. Moreover, any relationship between credit rating and corporate governance can be thought to be an interesting finding. The relationship we find between credit rating and leverage is not as evident as that found by other researchers for different countries; it is significantly positively related to the outside director, firm size, tangible assets and firm age, and CEO and chairman office plurality. However, leverage is found to be negatively correlated with board size, profitability, growth opportunity, and non-debt tax shield. Credit rating is positively associated with leverage, but in a less significant way. CEO-Board chairship duality is insignificantly related to leverage. The non-debt tax shield is significantly correlated with leverage. The correlation coefficient between CEO duality and auditor is positive but weakly significant, but seems not consistent with expectations. Finally, profitability cause could be regarded as an interesting finding. Indeed, there is an inverse correlation between profitability and total debt (Notice that the result supports the pecking order theory). In conclusion, it appears that credit rating has less effect on the so listed large Chinese companies than in other countries. Nevertheless, the perspective of assessing credit risk rating by relevant agencies is indubitably a recommended time dependent leverage determinant. [ABSTRACT FROM AUTHOR]

This study sets out a new methodology to exemplify, through a set of risk metrics called the Greeks, impact of a bond's structured provisions (e.g., call, put, and conversion options) on its risk characteristics and its propensity for agency conflicts. The methodology is assessed by applying it to a sample of 159 non-convertible bonds, with time-scheduled call and put provisions issued between 1977 and 2005. A structural contingent-claims valuation model is used to value the bonds and estimate the Greeks. The methodology is used to assess the impact of the call and put provisions on the bond's credit risk and interest-rate risk, as well as the provisions' ability to mitigate the agency conflict associated with over-investment, under-investment, asset-substitution, and information asymmetry about the firm's true risk among stakeholders. The main findings of this study are that the put option plays a key role in reducing credit risk, mitigating agency conflict, and protecting against volatility shocks; conversely, the call option plays a key role in reducing interest-rate risk. The methodology is sufficiently general to apply to bonds and preferred stock with any set of structured provisions. [ABSTRACT FROM AUTHOR]

This article introduces a new approach for dealing with the diversification/concentration risk of fixed income assets. Because Government bonds, corporate bonds, and mortgage backed securities constitute a large proportion of the assets of institutional investors in most countries, it is important to be able to determine the number of lines/issuers of such assets, not only for portfolio management but also for risk management purposes. The approach that I introduce shows the dependence of the critical number of lines of fixed income assets on the main interest rate risk and credit risk drivers. Specifically, I examine the importance of volatility risk, force of mean reversion, default risk, recovery risk, and default dependence risk on the critical number of assets in a fixed income portfolio. The methodology in this paper relies on the use of the coefficient of variation for the computation of the critical number of credit-sensitive securities in a fixed income portfolio. To the best of my knowledge, this paper is the first to develop such an approach. [ABSTRACT FROM AUTHOR]

Corporate bond yields are the manifestation of the cost of financing for private firms, and if properly evaluated, they provide researchers with valuable risk information. Within this context, this work is the first study producing corporate yield spreads for all S&P-rated bonds of G20 nations to explain their comparative riskiness. The option-adjusted spread analysis is an advanced method that enables us to compare the bonds with embedded options and different cash flow characteristics. For securities with embedded options, the volatility in the interest rates plays a role in ascertaining whether the option is going to be invoked or not. Therefore, researchers need a spread that, when added to all the forward rates on the tree, will make the theoretical value equal to the market price. The spread that satisfies this condition is called the option-adjusted spread, since it considers the option embedded into the issue. Ultimately, this work investigates the credit risk differentials of S&P rated outstanding bonds issued by the G20 nations to provide international finance professionals with option-adjusted corporate yield spreads showing the credit risk attributable to debt instruments. Detailed results computed using OAS methodology are presented in tables and used to answer the six vital credit-risk-related questions introduced in the introduction. [ABSTRACT FROM AUTHOR]

Sustainability-Linked Bonds (SLBs) are a new type of general corporate purpose bond in which payments are tied to an issuer's sustainability key performance indicators (KPIs) with respect to the environmental, social, and governance (ESG) criteria. The structure is complementary to green bonds. The Tesco SLBs are linked to the firm's ability to cut its greenhouse gas emissions by 60%. The priority is to reduce its reliance on nonrenewable grid electricity, which contributed 65% of Tesco's global carbon emissions footprint. Tesco accounts for 1% of electricity demand in the UK. Failure to meet the goals will result in a coupon step-up by 25 basis points on the last three coupons. The aim of our study is to investigate the presence of, how we call it 'ESG spread', marked by negative yield difference between SLB and regular bonds. It is something similar to 'greenium', that is, a premium paid by bondholders for green bonds when compared to nongreen bonds. We compare the bid and ask yields of SLBs with the interpolated yields, calculated for the yields of Tesco and Carrefour notes. Then, we look into the SLB yields in coupon step-up scenario to answer the question if the issuer's failure to keep up with KPIs results in changing of ESG spread from negative to positive. [ABSTRACT FROM AUTHOR]

The green bond market develops rapidly and aims to contribute to climate mitigation and adaptation significantly. Green bonds as any asset are subject to transition climate risk, namely, regulatory risk. This paper investigates the impact of unexpected political events on the risk and returns of green bonds and their correlation with other assets. We apply a traditional and regression-based event study and find that events related to climate change policy impact green bonds indices. Green bonds indices anticipated the 2015 Paris Agreement on climate change as a favorable event, whereas the 2016 US Presidential Election had a significant negative impact. The negative impact of the US withdrawal from the Paris agreement is more prominent for municipal but not corporate green bonds. All three events also have a similar effect on green bonds performance in the long term. The results imply that, despite the benefits of issuing green bonds, there are substantial risks that are difficult to hedge. This additional risk to green bonds might cause a time-varying premium for green bonds found in previous literature. [ABSTRACT FROM AUTHOR]

An introduction to the journal is presented in which the editor discusses various articles published within the issue on topics like credit spread index, corporate bond pricing model, and credit default swap (CDS) pricing.

This work reports the development and optimization of a rapid and low-cost pen-on-paper plotting approach for the fabrication of paper-based analytical devices (PADs) using commercial writing stationery. The desired fluidic patterns were drawn on the paper substrate with commercial marker pens using an inexpensive computer-controlled x–y plotter. For the fabrication of electrochemical PADs, electrodes were further deposited on the devices using a second x–y plotting step with commercial writing pencils. The effect of the fabrication parameters (type of paper, type of marker pen, type of pencil, plotting speed, number of passes, single- vs. double-sided plotting), the chemical resistance of the plotted devices to different solvents and the structural rigidity to multiple loading cycles were assessed. The analytical utility of these devices is demonstrated through application in optical sensing of total phenols using reflectance calorimetry and in electrochemical sensing of paracetamol and ascorbic acid. The proposed manufacturing approach is simple, low cost, flexible, rapid and fit-for-purpose and enables the fabrication of sub-"one-dollar" PADs with satisfactory mechanical and chemical resistance and good analytical performance. [ABSTRACT FROM AUTHOR]

This paper investigates the incentive of credit rating agencies (CRAs) to bias ratings using a semiparametric, ordered-response model. The proposed model explicitly takes conflicts of interest into account and allows the ratings to depend flexibly on risk attributes through a semiparametric index structure. Asymptotic normality for the estimator is derived after using several bias correction techniques. Using Moody's rating data from 2001 to 2016, I found that firms related to Moody's shareholders were more likely to receive better ratings. Such favorable treatments were more pronounced in investment grade bonds compared with high yield bonds, with the 2007–2009 financial crisis being an exception. Parametric models, such as the ordered-probit, failed to identify this heterogeneity of the rating bias across different bond categories. [ABSTRACT FROM AUTHOR]

This study extracts the common factors from firm-based credit spreads of major Japanese corporate bonds and examines the predictive content of the credit spread on the real economy. Instead of employing single-maturity corporate bond spreads, we focus on the entire term structure of the credit spread to predict the business cycle. We extend the dynamic Nelson-Siegel model to allow for both common and firm-specific factors. The results show that the estimated common factors are important drivers of individual credit spreads and have substantial predictive power for future Japanese economic activity. This study contributes to the literature by examining the relationship between firm-based credit spread curves and economic fluctuation and forecasting the business cycle. [ABSTRACT FROM AUTHOR]

This article proposes an energy-efficiency strategy based on the optimization of driving patterns for an electric vehicle (EV). The EV studied in this paper is a commercial vehicle only driven by a traction motor. The motor drives the front wheels indirectly through the differential drive. The electrical inverter model and the power-train efficiency are established by lookup tables determined by power tests in a dynamometric bank. The optimization problem is focused on maximizing energy-efficiency between the wheel power and battery pack, not only to maintain but also to improve its value by modifying the state of charge (SOC). The solution is found by means of a Particle Swarm Optimization (PSO) algorithm. The optimizer simulation results validate the increasing efficiency with the speed setpoint variations, and also show that the battery SOC is improved. The best results are obtained when the speed variation is between 5% and 6%. [ABSTRACT FROM AUTHOR]

Invasive alien plant species (IAPS) are one of the biggest challenges in European ecosystems, displacing local vegetation, destroying agricultural land, and causing billions of dollars of damage to the European economy every year. Many of them are removed daily and mainly burned. In this work, we investigated the possibilities of using plants as feedstock for paper production. Papers made from three invasive alien plants, i.e., Knotweed, Goldenrod, and Black locust, were studied and compared with commercial office paper. The study included testing of: (1) structural properties—basic physical properties, grammage, thickness, density and specific volume, moisture content, and ash content; (2) physical and dynamic mechanical properties—tensile strength, Clark stiffness, viscoelastic properties; (3) colorimetric properties of prints; (4) effect of UV light on ageing; and (5) study of cellulose fiber structure and morphology by microscopy. The results suggested that the paper produced can be used as commercial office paper, considering that the paper is slightly dyed. Such papers can also be used for special purposes that present a natural style and connection to nature. The papers produced can also be used for printing documents that are meant to be kept. [ABSTRACT FROM AUTHOR]

This paper examines the interdependence between green financial instruments, represented by green bonds and green stocks, and a set of major conventional assets, such as Treasury, investment-grade and high-yield corporate bonds, general stocks, crude oil, and gold. To that end, a novel wavelet-based network approach that allows for assessing the degree of interconnection between green financial products and traditional asset classes across different investment horizons is applied. The empirical results show that green bonds are tightly linked to Treasury and investment-grade corporate bonds, while green stocks are strongly tied to general stocks, regardless of the specific time period and investment horizon considered. However, despite their common climate-friendly nature, there is no a remarkable association between green bonds and green stocks. This means that these green investments constitute basically two independent asset classes, with a distinct risk-return profile and aimed at a different type of investor. Furthermore, green financial products have a weak connection with high-yield corporate bonds and crude oil. These findings can have important implications for investors and policy makers in terms of investment decision, hedging strategies, and sustainability and energy policies. [ABSTRACT FROM AUTHOR]

In this paper an overview of commercial hydrogen separation technologies is given. These technologies are discussed and compared—with a detailed discussion on membrane-based technologies. An emerging and promising novel hydrogen separation technology, namely, electrochemical hydrogen separation (EHS) is reviewed in detail. EHS has many advantages over conventional separation systems (e.g., it is not energy intensive, it is environmentally-friendly with near-zero pollutants, it is known for its silent operation, and, the greatest advantage, simultaneous compression and purification can be achieved in a one-step operation). Therefore, the focus of this review is to survey open literature and research conducted to date on EHS. Current technological advances in the field of EHS that have been made are highlighted. In the conclusion, literature gaps and aspects of electrochemical hydrogen separation, that require further research, are also highlighted. Currently, the cost factor, lack of adequate understanding of the degradation mechanisms related to this technology, and the fact that certain aspects of this technology are as yet unexplored (e.g., simultaneous hydrogen separation and compression) all hinder its widespread application. In future research, some attention could be given to the aforementioned factors and emerging technologies, such as ceramic proton conductors and solid acids. [ABSTRACT FROM AUTHOR]

The goal of this research was to evaluate a polymeric system, including biopolymers, as a multi-component material coating on paperboard for bread. The main aim of the research was to create a humidity-controlling packaging material. This means that the packaging material should contain filler which will absorb water or water vapour from the bread. The ideal packaging should have high barrier qualities against water vapour, enabling the possible release of water from the product (to maintain proper humidity inside the packaging). The preliminary storage tests made of the bread confirmed that the freshness of a product kept in a climatic chamber in RH = 70% was the highest. To summarise, the obtained packaging should maintain the required humidity (in the case of bread, the optimal humidity is 70%) within the packaging to keep the bread fresh after more than 72 h of storage. A "sandwich" form of (multilayer) packaging was indicated as a solution to this problem. The main objective of this packaging was to obtain two paper layers and one starch layer to increase water absorption from the bread. It was also important to obtain a thin, external hydrophobic layer to decrease the water vapour transmission rate of the packaging (WVTR). A number of ''sandwich" packaging types were prepared, consisting of two sheets of paper with an external aquaseal coating and an internal starch coating (with a NaCl filler). The covered ''sandwich" papers were then used to create packaging that could be used for the bread storage tests. The study results confirmed that the bread stored for 72 h in the "sandwich" packaging was found to be fresher than the same product stored in commercial paper packaging. [ABSTRACT FROM AUTHOR]

Credit risk modeling by debt pricing has been a popular theme in both academia and practice since the subprime crisis. In this paper, we devote our study to the indifferent price of a corporate bond with credit risk involving both default risk and credit rating migration risk in an incomplete market. The firm's stock and a financial index on the market as tradable assets are introduced to hedge the credit risk, and the bond price is determined by the indifference of investors' utilities with and without holding the bond. The models are established under the structural framework and result in Hamilton–Jacobi–Bellman (HJB) systems regarding utilities subject to default boundary and multiple migration boundaries. According to dynamic programming theory, closed-form solutions for pricing formulas are derived by implementing an inverted iteration program to overcome the joint effect of default and multiple credit rating migration. Therefore, with the derived explicit pricing formulas for the corporate bond, the models can be easily applied in practice, and investors can generate their strategies of hedging the credit risk by easily analyzing the impacts of the parameters on the bond price. [ABSTRACT FROM AUTHOR]

Bridge inspections are an important procedure for maintaining the infrastructure vital to our economy and well-being. The current methodology of utilizing specialized equipment such as snooper trucks and scaffolding to support manned-inspections poses a significant financial cost, disrupts traffic, and is dangerous to the inspectors and public. The advent of unmanned aerial systems (UAS), more commonly called drones, presents a practical solution that promises reduced cost, enhanced safety, and is significantly less intrusive than previous methodologies. Current limitations in the implementation of UAS include the reliance on a skilled operator and/or the requirement for a UAS to operate in a cluttered, GPS-denied environment. A solution to these challenges is presented in this paper by utilizing commercial off-the-shelf (COTS) hardware including laser rangefinders, optical flow sensors, and live video telemetry. Included in the system is the obstacle avoidance equipped drone and a ground station intended to be manned by a pilot and bridge inspector. The proposed custom-fabricated UAS was implemented during eight inspections of Florida Department of Transportation (FDOT) bridges. The UAS was able to navigate under GPS-denied and obstacle-laden bridge decks with position-hold performance comparable to, if not better than, a COTS unit in an unobstructed environment. The position hold capability maintained an altitude of ±12.8 cm with a horizontal hold of ±435 cm. Details of the hardware, algorithm development, and suggestions for future research are discussed in this paper. [ABSTRACT FROM AUTHOR]

Meat spoilage is a very complex combination of processes related to bacterial activities. Numerous efforts are underway to develop automated techniques for monitoring this process. We selected a panel of pH indicators and a colourimetric dye, selective for thiols. Embedding these dyes into an anion exchange cellulose sheets, i.e., the commercial paper sheet known as "Colour Catcher®" commonly used in the washing machine to prevent colour run problems, we obtained an array made of six coloured spots (here named Dye name-CC@). The array, placed over the tray containing a sample of meat or fish (not enriched at any extend with spoilage products), progressively shows a colour change in the six spots. Photos of the array were acquired as a function of time, RGB indices were used to follow the spoilage, Principal Component Analysis to model the data set. We demonstrate that the array allows for the monitoring the overall spoilage process of chicken, beef, pork and fish, obtaining different models that mimic the degradation pathway. The spoilage processes for each kind of food, followed by the array colour evolution, were eventually compared using three-way PCA, which clearly shows same degradation pattern of protein foods, altered only according to the different substrates. [ABSTRACT FROM AUTHOR]

Corporate bond defaults in different sectors often increase suddenly at roughly similar times, although some sectors see default rates jump earlier than others. This could reflect contagion among sectors—specifically, defaults in one sector leading to credit stresses in other sectors of the economy that would not otherwise have seen stresses. To complicate matters, simple correlation-based tests for contagion are often biased, reflecting increased volatility in periods of stress. This paper uses sectoral default data from over 30 sectors to test for signs of contagion over the past 30 years. While jumps in sectoral default rates do often coincide, there is no consistent evidence of contagion across different periods of stress from unbiased test results. Instead, coincident jumps in sectoral default rates are likely to reflect common macroeconomic shocks. [ABSTRACT FROM AUTHOR]

In recent years, new energy sources have ushered in tremendous opportunities for development. The difficulties to finance new energy enterprises (NEEs) can be estimated through issuing corporate bonds. However, there are few scientific and reasonable methods to assess the credit risk of NEE bonds, which is not conducive to the healthy development of NEEs. Based on this, this paper analyzes the advantages and risks of NEEs issuing bonds and the main factors affecting the credit risk of NEE bonds, constructs a hybrid model for assessing the credit risk of NEE bonds based on factor analysis and logistic regress analysis techniques, and verifies the applicability and effectiveness of the model employing relevant data from 46 Chinese NEEs. The results show that the main factors affecting the credit risk of NEE bonds are internal factors involving the company’s profitability, solvency, operational ability, growth potential, asset structure and viability, and external factors including macroeconomic environment and energy policy support. Based on the empirical results and the exact situation of China’s NEE bonds, this article finally puts forward several targeted recommendations. [ABSTRACT FROM AUTHOR]