This paper studies a valuation framework for financial contracts subject to reference and counterparty default risks with collateralization requirement. We propose a fixed point approach to analyze the mark-to-market contract value with counterparty risk provision, and show that it is a unique bounded and continuous fixed point via contraction mapping. This leads us to develop an accurate iterative numerical scheme for valuation. Specifically, we solve a sequence of linear inhomogeneous PDEs, whose solutions converge to the fixed point price function. We apply our methodology to compute the bid and ask prices for both defaultable equity and fixed-income derivatives, and illustrate the non-trivial effects of counterparty risk, collateralization ratio and liquidation convention on the bid-ask spreads.
This paper examines the stated residential preference of squatters and resettiers in Davao City , Phi】 ippines . Resettlement schemes are popular programs of the local government to solve thc problem of squatter settlements . However , the stated prcf 巳rences of these squatters and rescttlers are not usually considered in th6 planning and implementation of these resettlement programs . Applying the conjoint analysis , we examine the residential preference pattom of these groups .【 t was fbund that they generaHy prefer owner − occupied , outer city location , abundant in 倉a utHities , common transportation , single − detached housing and advanced social faciHties . The use of illustrative profile cards generat¢ d positive response from the respondents , The methodology employed in this study was fbund to be feasible and usefUl fbrし lnderstanding residential preference ofsquatters and resettlers . Kaywords : sguatters , nesettters , statedresidentiatpreference
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