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rated companies do not fare as well as junior structures of higher-rated companies In this context, structure refers to the priority of cash flows that are involved The pattern of cash flows may be identical for both a senior and junior bond (with semiannual coupons and a 10-year maturity), but with very different probabilities assigned to the likelihood of actually receiving the cash flows The lower likelihood associated with the junior structure means that its coupon and yield should be higher relative to a senior structure Exactly how much higher will largely depend on investors expectations of the additional cash flow risk that is being absorbed Rating agency statistics can provide a historical or backward-looking perspective of credit risk dynamics Credit derivatives provide a more forward-looking picture of credit risk expectations.



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A disability should not stop anyone from traveling. There are more resources out there than ever before. Because the Bahamian islands are relatively flat, it is fairly easy to get around, even for persons with minor disabilities. You can obtain a free copy of Air Transportation of Handicapped Persons, published by the U.S. Department of Transportation. Write for Free Advisory Circular No. AC12032, Distribution Unit, U.S. Department of Transportation, Publications Division, 3341Q 75 Ave., Landover, MD 20785 (& 301/322-4961; fax 301/386-5394; http://isddc.dot.gov). Only written requests are accepted. Many travel agencies offer customized tours and itineraries for travelers with disabilities. Flying Wheels Travel (& 507/451-5005; fax 507/451-1685; www.flyingwheelstravel.com) offers escorted tours and cruises that emphasize sports and private tours in minivans with lifts. Access Adventures (& 716/889-9096) offers customized itineraries for a variety of travelers with disabilities. Accessible Journeys (& 800/ TINGLES or 610/521-0339; www.disabilitytravel.com) caters specifically to slow walkers and wheelchair travelers and their families and friends. Organizations that offer assistance to travelers with disabilities include the Moss Rehab Hospital (& 215/456-5995; www.moss resourcenet.org), which provides helpful phone assistance through its Travel Information Service. The Society for Accessible Travel and Hospitality (& 212/447-7284; fax 212/725-8253; www.sath.org) offers a wealth of travel resources for all types of disabilities and informed recommendations on destinations, access guides, travel agents, tour operators, vehicle rentals, and companion services. Annual membership costs $45 for adults; $30 for seniors and students. The





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A processing instruction is a special command to a single application. The W3C has defined some special processing instructions for certain standard actions like the XML declaration and attaching style sheets to XML documents. We like to think of processing instructions as an escape hatch to enable you to add non-XML or nonlanguage specific syntax to a document. The syntax of the processing instruction takes the following general form:

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As explained in 3, a credit derivative is simply a forward, future, or option that trades to an underlying spot credit instrument or variable While the pricing of the credit spread option certainly takes into consideration any historical data of relevance, it also should incorporate reasonable future expectations of the company s credit outlook As such, the implied forward credit outlook can be mathematically backed-out (solved for with relevant equations) of this particular type of credit derivative For example, just as an implied volatility can be derived using a standard options valuation formula, an implied credit volatility can be derived in the same way when a credit put or call is referenced and compared with a credit-free instrument (as with a comparable Treasury option) Once obtained, this implied credit outlook could be evaluated against personal sentiments or credit agency statistics.

package java.rmi.registry; public final class LocateRegistry { public static Registry getRegistry() throws java.rmi.RemoteException; public static Registry getRegistry(int port) throws java.rmi.RemoteException; public static Registry getRegistry(String host) throws java.rmi.RemoteException, java.rmi.UnknownHostException; public static Registry getRegistry(String host,int port) throws java.rmi.RemoteException, java.rmi.UnknownHostException; public static Registry createRegistry(int port) throws java.rmi.RemoteException; }

In 1973 Black and Scholes published a famous article (which subsequently was built on by Merton and others) on how to price options, called The Pricing of Options and Corporate Liabilities 6 The reference to liabilities was to support the notion that a firm s equity value could be viewed as a call written on the assets of the firm, with the strike price (the point of default) equal to the debt outstanding at expiration Since a firm s default risk typically increases as the value of its assets approach the book value (actual value in the marketplace) of the liabilities, there are three elements that go into determining an overall default probability 1 The market value of the firm s assets 2 The assets volatility or uncertainty of value 3 The capital structure of the firm as regards the nature of its various contractual obligations.

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