Spark Spread Options Are Hot!

Are credit spreads too low or too high?

Are credit spreads too low or too high? A hybrid barrier option approach for financial distress

✍ William Lin; David Sun 📂 Article 📅 2009 🏛 John Wiley and Sons 🌐 English ⚖ 304 KB

## Abstract Based on the works of Brockman, P. and Turtle, H. J. (2003) and Giesecke, K. (2004), we propose in this study a hybrid barrier option model to explain observed credit spreads. It is free of problems with the structural model, which underprescribed credit spreads for investment grade cor

The global network of plate boundaries c

The global network of plate boundaries can be divided into two discrete subnetworks containing the spreading and subduction boundaries, respectively. We advocate that this division is a stable pattern that derives from consistency rules in rigid-plate rotations. Subduction is distributed along a single, long subnetwork, hence organizing the mantle convection as a single, long downwelling wall and two lower mantle upwelling columns, at the Pacific and African sides of the Earth, respectively. The columns should merge upward between Antarctica and Australia to reach the single, long spreading subnetwork. The flow encircles two toric volumes that escape convectional mixing and are the likely sources of the two, Atlantic–Indian and Pacific, hot spot domains.

✍ L.-E. Ricou 📂 Article 📅 1998 🏛 John Wiley and Sons 🌐 English ⚖ 197 KB