Growth and liquidity in the credit derivatives market have created new investment opportunities, which this paper aims to explore. In particular, the traditional pursuit of credit exposure by holding corporate bonds or loans leads to an allocation that not only has a bearing on a diversified portfolio’s credit component but that also affects its pure interest rate component. Moreover, the fact that a cash investment is no longer required when selling a credit default swap makes it possible to increase credit exposure to levels that used to be impossible or too costly to attain. Therefore, given that the investment opportunity set has changed, it is worth looking at the new allocation that takes advantage of the newly available instruments. What, in fact, are these new investment vehicles?
There are two broad categories of instrument, the most liquid being the credit default swap, or CDS, and the most complex being structured bonds such as the collateralized debt obligation, or CDO. CDS growth has been impressive. Basically, a CDS offers the buyer protection in case of a standardized and pre-defined “credit event”, the most acute case being default.
Healthier eating and being physically active can significantly improve health. In low income communities and communities of color, it can reduce health disparities. This report identifies key lessons from eight national programs for making healthy eating and active living initiatives successful in reducing health disparities.
Low income communities, African American populations and Latino populations have disproportionately more cancer, heart disease, and diabetes. Being overweight, particularly obese, is a contributing factor in these diseases. By implementing changes that encourage healthy eating and physical activity, communities can help to prevent these major diseases.
The field of household finance is concerned with the study of how households make investment decisions to attain their objectives. Campbell (2006) in his presidential address highlighted the importance of studying this neglected field. There is often considerable disparity between the predictions of the standard finance models and what households actually do in practice. Campbell notes that the distinction between positive and normative models poses a particular challenge in the context of household finance and suggests that these discrepancies are central to the field of household finance.
