The aim of the paper is to provide insights into lending against crop receipts mechanism. Crop emerged as promising financial instruments creating an additional type collateral for agricultural producers that pledge their future production in order finance ongoing activities. At same time, they offer alternative investment opportunity banks through creation a new asset class. European Bank Reco...

We consider the dynamic risk management problem for a commodity processor in a multi-period setting. The firm procures an input commodity and processes it to produce an output commodity. The processed commodity is sold using forward contracts while the input itself can be traded at the end of the horizon. The firm can also trade financial derivative instruments to manage the commodity price ris...

Actuaries measure, model, and manage risks. Risk associated with the investment function is a major uncertainty faced by many insurance companies. Actuaries should have knowledge of the asset side of the balance sheet of an insurance company and how it relates to the liability side. Such knowledge includes the operation of financial markets, the instruments available to the insurance companies,...

In this paper, we present some guidelines for implementing various financial instruments for the purposes of credit and payment, including protocols for commercial transactions, dispute resolution, and establishing credit reputation. We strive to employ only widely used, standardized cryptography and keep the proposed procedures as simple as possible on the conceptual level. Also, we want all t...

This interim draft represents work in progress. It is submitted for discussion purposes at the Aggregation of Opinions conference sponsored by the Cowles Foundation, Yale University, September 15–17, 2006.

Financial markets in the past decade witnessed an enormous interest of IPO based financing of technology-based business. At the same time large sums of venture capital were provided to technology-oriented enterprises. In this article we review recent developments in the provision of equity for technology-based enterprises. After a brief introduction in the possibilities for financing enterprise...

The paper presents new machine learning methods: signal composition, which classifies time-series regardless of length, type, and quantity; and self-labeling, a supervised-learning enhancement. The paper describes further the implementation of the methods on a financial search engine system using a collection of 7,881 financial instruments traded during 2011 to identify inverse behavior among t...

commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for financing working capital and meeting short-term liabilities. it is one of the most important financial instruments that constitute a significant portion of issued debt securities in financial markets. nevertheless, commercial paper, like many other conventional financial instruments, has been st...

Michael Woodford’s paper “Inflation Targeting and Financial Stability” presents a case for tighter monetary policy, “leaning against the wind,” in order to reduce the probability of a financial crisis. However, the introduction of financial-stability instruments (macroprudential instruments) that have a more direct effect on leverage than the policy rate allows monetary-policy and financial-sta...