Mushirul Hasan
- Published in print:
- 2009
- Published Online:
- October 2012
- ISBN:
- 9780198063117
- eISBN:
- 9780199080199
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198063117.003.0036
- Subject:
- History, Indian History
The author comments on the economy of England, describing the country's finances, mode of assessing the taxes, government loans, national debt, and the effects of the heavy taxes on all classes of ...
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The author comments on the economy of England, describing the country's finances, mode of assessing the taxes, government loans, national debt, and the effects of the heavy taxes on all classes of people (poor, rich, and the middling classes). He proposes a plan for the liquidation of the national debt.Less
The author comments on the economy of England, describing the country's finances, mode of assessing the taxes, government loans, national debt, and the effects of the heavy taxes on all classes of people (poor, rich, and the middling classes). He proposes a plan for the liquidation of the national debt.
Dr. Ben S. Branch, Hugh M. Ray, and Robin Russell
- Published in print:
- 2007
- Published Online:
- May 2007
- ISBN:
- 9780195306989
- eISBN:
- 9780199783762
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195306989.003.0006
- Subject:
- Economics and Finance, Financial Economics
This chapter describes the day-to-day management of a liquidation. It addresses the liquidator's need to secure office space, retain key employees, hire staff, take custody of the company's records, ...
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This chapter describes the day-to-day management of a liquidation. It addresses the liquidator's need to secure office space, retain key employees, hire staff, take custody of the company's records, establish internal controls for the handling of funds, maintain records, and comply with federal, state, and local laws. The process for the review and assumption or rejection of executory contracts to which the debtor is a party is outlined. The practical steps for liquidation management are also explained.Less
This chapter describes the day-to-day management of a liquidation. It addresses the liquidator's need to secure office space, retain key employees, hire staff, take custody of the company's records, establish internal controls for the handling of funds, maintain records, and comply with federal, state, and local laws. The process for the review and assumption or rejection of executory contracts to which the debtor is a party is outlined. The practical steps for liquidation management are also explained.
JULIUS RUIZ
- Published in print:
- 2005
- Published Online:
- January 2010
- ISBN:
- 9780199281831
- eISBN:
- 9780191712999
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199281831.003.0008
- Subject:
- History, European Modern History
This chapter focuses on the liquidation of the post-war repression in Spain. The liquidation process occurred without the regime modifying — let alone repudiating — the rationale behind the mass ...
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This chapter focuses on the liquidation of the post-war repression in Spain. The liquidation process occurred without the regime modifying — let alone repudiating — the rationale behind the mass punishment and purging of the defeated. This helps to explain why the repressive system constructed during or immediately after the civil war survived in some form until the 1960s and 1970s. However, the fact that the liquidation of the civil war repression in Spain was not based on a genuine desire for reconciliation does not make it meaningless. In Madrid, and elsewhere, mass executions ended in 1941; few civil war prisoners actually served the totality of their sentences; and few LPR investigations ended in a sentence.Less
This chapter focuses on the liquidation of the post-war repression in Spain. The liquidation process occurred without the regime modifying — let alone repudiating — the rationale behind the mass punishment and purging of the defeated. This helps to explain why the repressive system constructed during or immediately after the civil war survived in some form until the 1960s and 1970s. However, the fact that the liquidation of the civil war repression in Spain was not based on a genuine desire for reconciliation does not make it meaningless. In Madrid, and elsewhere, mass executions ended in 1941; few civil war prisoners actually served the totality of their sentences; and few LPR investigations ended in a sentence.
Michael Chui and Prasanna Gai
- Published in print:
- 2005
- Published Online:
- July 2005
- ISBN:
- 9780199267750
- eISBN:
- 9780191602504
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199267758.003.0004
- Subject:
- Economics and Finance, Financial Economics
Explores the role played by fundamental factors in driving financial crises. The model of optimal banking crises by Allen and Gale (1998) is explored in detail, as is the first-generation currency ...
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Explores the role played by fundamental factors in driving financial crises. The model of optimal banking crises by Allen and Gale (1998) is explored in detail, as is the first-generation currency crisis model of Krugman (1979). A key insight is that the welfare costs of crisis are associated with the inefficient liquidation of assets and sub-optimal risk sharing, rather than crises per se.Less
Explores the role played by fundamental factors in driving financial crises. The model of optimal banking crises by Allen and Gale (1998) is explored in detail, as is the first-generation currency crisis model of Krugman (1979). A key insight is that the welfare costs of crisis are associated with the inefficient liquidation of assets and sub-optimal risk sharing, rather than crises per se.
RIZWAAN JAMEEL MOKAL
- Published in print:
- 2005
- Published Online:
- January 2010
- ISBN:
- 9780199264872
- eISBN:
- 9780191718397
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199264872.003.0004
- Subject:
- Law, Company and Commercial Law
This chapter delves into the nature of the pari passu principle, which supposedly requires all unsecured claims of an insolvent company to be met proportionately from the insolvent's estate. It ...
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This chapter delves into the nature of the pari passu principle, which supposedly requires all unsecured claims of an insolvent company to be met proportionately from the insolvent's estate. It argues that there is widespread misunderstanding about the role of this principle. The principle is claimed by commentators to be responsible for the orderliness of corporate liquidation, to explain and justify the collectivity of the liquidation regime and the rules providing for the avoidance (or more accurately, adjustment) of certain types of transaction, and to ensure fairness to all of the insolvent's creditors. The central claim in the chapter —that none of these functions can properly be attributed to the principle —is illustrated by empirical evidence of how the estates of insolvent companies are in fact distributed, the statutory provisions which help put the principle in its proper place, and the case law said to support it. The Authentic Consent Model is deployed to demonstrate that the pari passu rule —often called the ‘equality’ principle—has little to do with ‘real’ equality. The chapter shows what it claims is the actual role of ‘formal’ equality of the sort enshrined in the ‘equality’ principle.Less
This chapter delves into the nature of the pari passu principle, which supposedly requires all unsecured claims of an insolvent company to be met proportionately from the insolvent's estate. It argues that there is widespread misunderstanding about the role of this principle. The principle is claimed by commentators to be responsible for the orderliness of corporate liquidation, to explain and justify the collectivity of the liquidation regime and the rules providing for the avoidance (or more accurately, adjustment) of certain types of transaction, and to ensure fairness to all of the insolvent's creditors. The central claim in the chapter —that none of these functions can properly be attributed to the principle —is illustrated by empirical evidence of how the estates of insolvent companies are in fact distributed, the statutory provisions which help put the principle in its proper place, and the case law said to support it. The Authentic Consent Model is deployed to demonstrate that the pari passu rule —often called the ‘equality’ principle—has little to do with ‘real’ equality. The chapter shows what it claims is the actual role of ‘formal’ equality of the sort enshrined in the ‘equality’ principle.
Oliver Hart
- Published in print:
- 1995
- Published Online:
- November 2003
- ISBN:
- 9780198288817
- eISBN:
- 9780191596353
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0198288816.003.0008
- Subject:
- Economics and Finance, Financial Economics
There are circumstances, arising perhaps from an unexpected shock, in which companies default on their debt. This chapter discusses the need for, and goals of, a formal bankruptcy procedure. A ...
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There are circumstances, arising perhaps from an unexpected shock, in which companies default on their debt. This chapter discusses the need for, and goals of, a formal bankruptcy procedure. A bankruptcy procedure should aim to achieve an ex‐post efficient outcome, preserve the bonding role of debt and the absolute priority of claims. The author describes the existing procedures in the West with particular emphasis in the US and the UK and point out some of their flaws. He presents the Aghion–Hart–Moore (AHM) bankruptcy procedure, in which debt claims are converted into equity (respecting absolute priority) and the decision about whether to liquidate or reorganize is then put to vote by the new shareholders. It is argued that AHM combines desirable features of existing procedures and at the same time overcomes some of the major shortcomings of these procedures.Less
There are circumstances, arising perhaps from an unexpected shock, in which companies default on their debt. This chapter discusses the need for, and goals of, a formal bankruptcy procedure. A bankruptcy procedure should aim to achieve an ex‐post efficient outcome, preserve the bonding role of debt and the absolute priority of claims. The author describes the existing procedures in the West with particular emphasis in the US and the UK and point out some of their flaws. He presents the Aghion–Hart–Moore (AHM) bankruptcy procedure, in which debt claims are converted into equity (respecting absolute priority) and the decision about whether to liquidate or reorganize is then put to vote by the new shareholders. It is argued that AHM combines desirable features of existing procedures and at the same time overcomes some of the major shortcomings of these procedures.
William Doyle
- Published in print:
- 1996
- Published Online:
- October 2011
- ISBN:
- 9780198205364
- eISBN:
- 9780191676598
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198205364.003.0009
- Subject:
- History, European Early Modern History
The members of the National Assembly who abolished the sale of public office in August 1789 were no strangers to venality. Of the 1,315 deputies who sat between 1789 and 1791, 483 either held, or had ...
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The members of the National Assembly who abolished the sale of public office in August 1789 were no strangers to venality. Of the 1,315 deputies who sat between 1789 and 1791, 483 either held, or had some direct experience of, venal office. Venality had introduced a ‘mercantile spirit’ into the judiciary, and made magistrates more interested in profit and privilege than in their duties. Prices had soared to exorbitant levels. Fearing the worst from the new order, their leaders largely spurned the elections, and the parlements kept quiet throughout the first half of 1789; but some venal companies, undeterred by the tone of the cahiers, went into print to argue for their own regeneration rather than abolition. Just as venality had been integral to the institutional paralysis which had eventually brought down the old order, so the efforts required for its liquidation were inseparable from the French Revolution's loss of direction.Less
The members of the National Assembly who abolished the sale of public office in August 1789 were no strangers to venality. Of the 1,315 deputies who sat between 1789 and 1791, 483 either held, or had some direct experience of, venal office. Venality had introduced a ‘mercantile spirit’ into the judiciary, and made magistrates more interested in profit and privilege than in their duties. Prices had soared to exorbitant levels. Fearing the worst from the new order, their leaders largely spurned the elections, and the parlements kept quiet throughout the first half of 1789; but some venal companies, undeterred by the tone of the cahiers, went into print to argue for their own regeneration rather than abolition. Just as venality had been integral to the institutional paralysis which had eventually brought down the old order, so the efforts required for its liquidation were inseparable from the French Revolution's loss of direction.
BENOIT MARIO PAPILLON
- Published in print:
- 2012
- Published Online:
- May 2013
- ISBN:
- 9780199754656
- eISBN:
- 9780199979462
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199754656.003.0025
- Subject:
- Economics and Finance, Financial Economics, International
Comparisons between countries and over time indicate large differences in business bankruptcy rates. Standard causes of bankruptcy, which leave no explicit role for institutions and the law, do not ...
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Comparisons between countries and over time indicate large differences in business bankruptcy rates. Standard causes of bankruptcy, which leave no explicit role for institutions and the law, do not adequately account for these differences. This chapter uses the arithmetic of bankruptcy rates to sort out and classify potential sources of variations in bankruptcy rates, distinguishing stock from flow variables and business bankruptcy from other business failures. It then relates cross-country differences in business bankruptcy rates to differences in the characteristics of country laws as well as basic aspects of production including organization and financing.Less
Comparisons between countries and over time indicate large differences in business bankruptcy rates. Standard causes of bankruptcy, which leave no explicit role for institutions and the law, do not adequately account for these differences. This chapter uses the arithmetic of bankruptcy rates to sort out and classify potential sources of variations in bankruptcy rates, distinguishing stock from flow variables and business bankruptcy from other business failures. It then relates cross-country differences in business bankruptcy rates to differences in the characteristics of country laws as well as basic aspects of production including organization and financing.
Douglas Cumming, Na Dai, and Sofia A. Johan
- Published in print:
- 2013
- Published Online:
- May 2013
- ISBN:
- 9780199862566
- eISBN:
- 9780199332762
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199862566.003.0010
- Subject:
- Economics and Finance, Financial Economics
Chapter 10 discusses the survival of hedge funds. By analyzing what causes the failure of hedge funds, it is hoped that a better understanding of the risks in the hedge fund industry is developed.
Chapter 10 discusses the survival of hedge funds. By analyzing what causes the failure of hedge funds, it is hoped that a better understanding of the risks in the hedge fund industry is developed.
Dalvinder Singh
- Published in print:
- 2020
- Published Online:
- June 2020
- ISBN:
- 9780198844754
- eISBN:
- 9780191891786
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198844754.003.0007
- Subject:
- Law, Company and Commercial Law
This chapter assesses the link between insolvency and liquidation, focusing on the orderly protection of depositors. There are differences in approach to safeguard the public interest at the regional ...
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This chapter assesses the link between insolvency and liquidation, focusing on the orderly protection of depositors. There are differences in approach to safeguard the public interest at the regional and domestic levels. The misalignment of domestic insolvency-liquidation law and depositor protection mandates is likely to lead to wider techniques being needed to effectuate an orderly insolvency-liquidation proceeding and payout to banks’ depositors. This means the competent authority, the resolution authority, and the management of the bank, or administrator-liquidator will need to coordinate their responsibilities through a court-based process during the timeframe of failing or likely to fail to achieve an orderly payout to depositors. The potential coordination risks would need to be factored into the process of a failing or likely-to-fail timeframe.Less
This chapter assesses the link between insolvency and liquidation, focusing on the orderly protection of depositors. There are differences in approach to safeguard the public interest at the regional and domestic levels. The misalignment of domestic insolvency-liquidation law and depositor protection mandates is likely to lead to wider techniques being needed to effectuate an orderly insolvency-liquidation proceeding and payout to banks’ depositors. This means the competent authority, the resolution authority, and the management of the bank, or administrator-liquidator will need to coordinate their responsibilities through a court-based process during the timeframe of failing or likely to fail to achieve an orderly payout to depositors. The potential coordination risks would need to be factored into the process of a failing or likely-to-fail timeframe.
Hamish Anderson
- Published in print:
- 2017
- Published Online:
- March 2021
- ISBN:
- 9780198805311
- eISBN:
- 9780191927942
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198805311.003.0007
- Subject:
- Law, Company and Commercial Law
As Nicholls LJ said in Re Atlantic Computer Systems Plc: The basic object of the winding up process, in the case of an insolvent company, is to achieve an equal distribution of the company’s assets ...
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As Nicholls LJ said in Re Atlantic Computer Systems Plc: The basic object of the winding up process, in the case of an insolvent company, is to achieve an equal distribution of the company’s assets among the unsecured creditors.
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As Nicholls LJ said in Re Atlantic Computer Systems Plc: The basic object of the winding up process, in the case of an insolvent company, is to achieve an equal distribution of the company’s assets among the unsecured creditors.
Lawrence M. Crutcher
- Published in print:
- 2012
- Published Online:
- May 2013
- ISBN:
- 9780813136882
- eISBN:
- 9780813141411
- Item type:
- chapter
- Publisher:
- University Press of Kentucky
- DOI:
- 10.5810/kentucky/9780813136882.003.0015
- Subject:
- History, American History: 19th Century
George guarantees the note of Tom Bakewell for a large steamboat project, which is terminated following the Panic of 1837. Bakewell defaults and George bankrupts himself trying to pay the debt. On a ...
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George guarantees the note of Tom Bakewell for a large steamboat project, which is terminated following the Panic of 1837. Bakewell defaults and George bankrupts himself trying to pay the debt. On a lumber buying trip, he falls ill of an undefined gastro-intestinal ailment and dies on Christmas eve, 1841. His estate is insolvent, able to pay about 20 cents on the dollar of his indebtedness.Less
George guarantees the note of Tom Bakewell for a large steamboat project, which is terminated following the Panic of 1837. Bakewell defaults and George bankrupts himself trying to pay the debt. On a lumber buying trip, he falls ill of an undefined gastro-intestinal ailment and dies on Christmas eve, 1841. His estate is insolvent, able to pay about 20 cents on the dollar of his indebtedness.
Hal S. Scott
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780262034371
- eISBN:
- 9780262332156
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262034371.003.0017
- Subject:
- Economics and Finance, Economic History
The orderly liquidation authority (OLA) contained in Title II of the Dodd–Frank Act, created a new regime for receivership of nonbank financial companies whose failures “would have serious adverse ...
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The orderly liquidation authority (OLA) contained in Title II of the Dodd–Frank Act, created a new regime for receivership of nonbank financial companies whose failures “would have serious adverse effects on the financial stability in the United States.” As such, OLA is intended to offer regulators an alternative to bankruptcy proceedings. Once the company is under OLA, the Federal Deposit Insurance Corporation (FDIC) has broad authority to resolve the insolvent firm. The FDIC, in conjunction with the Bank of England, has stated its preference for a “single-point-of-entry” (SPOE) approach to resolving failed financial companies. Under this approach the FDIC would be appointed as receiver to the top-tier parent of the failed holding company. This chapter discusses the general design of the OLA and the SPOE strategy; total loss absorption capacity (TLAC) to assure holding company recapitalization; recapitalization of operating subsidiaries; safe harbor for derivatives counterparties facing a failing institution; cross-border cooperation of regulators in the use of the SPOE approach.Less
The orderly liquidation authority (OLA) contained in Title II of the Dodd–Frank Act, created a new regime for receivership of nonbank financial companies whose failures “would have serious adverse effects on the financial stability in the United States.” As such, OLA is intended to offer regulators an alternative to bankruptcy proceedings. Once the company is under OLA, the Federal Deposit Insurance Corporation (FDIC) has broad authority to resolve the insolvent firm. The FDIC, in conjunction with the Bank of England, has stated its preference for a “single-point-of-entry” (SPOE) approach to resolving failed financial companies. Under this approach the FDIC would be appointed as receiver to the top-tier parent of the failed holding company. This chapter discusses the general design of the OLA and the SPOE strategy; total loss absorption capacity (TLAC) to assure holding company recapitalization; recapitalization of operating subsidiaries; safe harbor for derivatives counterparties facing a failing institution; cross-border cooperation of regulators in the use of the SPOE approach.
Nicholas Chan, Mila Getmansky, Shane M. Haas, and Andrew W. Lo
- Published in print:
- 2007
- Published Online:
- February 2013
- ISBN:
- 9780226092850
- eISBN:
- 9780226092980
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226092980.003.0007
- Subject:
- Economics and Finance, Financial Economics
This chapter reports that inferences about risk can be acutely sensitive to the sample period used to produce risk measures. It also discusses the increasing role of hedge funds. The dynamics of ...
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This chapter reports that inferences about risk can be acutely sensitive to the sample period used to produce risk measures. It also discusses the increasing role of hedge funds. The dynamics of hedge funds are quite different to those of more traditional investments, and the potential impact on systemic risk is apparent. Illiquidity and smoothed returns may be significant properties for hedge fund returns. Serial correlation may serve as a proxy for a fund's liquidity exposure. The banking sector has significant exposure to certain hedge fund indexes, implying the presence of some common factors between hedge funds and banks, and raising the possibility that dislocation among the former can impact the latter. It is shown that the average liquidation probability for funds in 2004 is over 11 percent, which is higher than the historical unconditional attrition rate of 8.8 percent. The chapter explains how the banking sector is exposed to hedge fund risks.Less
This chapter reports that inferences about risk can be acutely sensitive to the sample period used to produce risk measures. It also discusses the increasing role of hedge funds. The dynamics of hedge funds are quite different to those of more traditional investments, and the potential impact on systemic risk is apparent. Illiquidity and smoothed returns may be significant properties for hedge fund returns. Serial correlation may serve as a proxy for a fund's liquidity exposure. The banking sector has significant exposure to certain hedge fund indexes, implying the presence of some common factors between hedge funds and banks, and raising the possibility that dislocation among the former can impact the latter. It is shown that the average liquidation probability for funds in 2004 is over 11 percent, which is higher than the historical unconditional attrition rate of 8.8 percent. The chapter explains how the banking sector is exposed to hedge fund risks.
David D. Li and Francis T. Lui
- Published in print:
- 2004
- Published Online:
- February 2013
- ISBN:
- 9780226386799
- eISBN:
- 9780226386966
- Item type:
- chapter
- Publisher:
- University of Chicago Press
- DOI:
- 10.7208/chicago/9780226386966.003.0009
- Subject:
- Economics and Finance, South and East Asia
This chapter tests competing theories of why governments dump (i.e., privatize or liquidate) state-owned enterprises (SOEs). The main finding is that governments dump SOEs not to increase efficiency ...
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This chapter tests competing theories of why governments dump (i.e., privatize or liquidate) state-owned enterprises (SOEs). The main finding is that governments dump SOEs not to increase efficiency but to enhance tax revenue, or relieve themselves of the financial burden of subsidizing unprofitable state enterprises. The chapter is organized as follows. Section 8.2 describes the simple model of privatization and its predictions. Section 8.3 explains the design of the empirical tests and measurement of variables. Test results are presented in Section 8.4, and Section 8.5 summarizes the chapter with discussions on some policy implications. Two commentaries are also included at the end of the chapter.Less
This chapter tests competing theories of why governments dump (i.e., privatize or liquidate) state-owned enterprises (SOEs). The main finding is that governments dump SOEs not to increase efficiency but to enhance tax revenue, or relieve themselves of the financial burden of subsidizing unprofitable state enterprises. The chapter is organized as follows. Section 8.2 describes the simple model of privatization and its predictions. Section 8.3 explains the design of the empirical tests and measurement of variables. Test results are presented in Section 8.4, and Section 8.5 summarizes the chapter with discussions on some policy implications. Two commentaries are also included at the end of the chapter.
Mila Getmansky Sherman and Rachel (Kyungyeon) Koh
- Published in print:
- 2017
- Published Online:
- August 2017
- ISBN:
- 9780190607371
- eISBN:
- 9780190607401
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780190607371.003.0003
- Subject:
- Economics and Finance, Financial Economics
This chapter analyzes the life cycle of hedge funds. Analysis using the Thomson Reuters Lipper TASS database reveals industry-related and fund-specific factors affecting the survival probabilities of ...
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This chapter analyzes the life cycle of hedge funds. Analysis using the Thomson Reuters Lipper TASS database reveals industry-related and fund-specific factors affecting the survival probabilities of hedge funds. Analysis of hedge fund flows and asset sizes can offer insights into a fund’s future survival. Fund performance is a nonlinear function of a fund’s asset size. A fund can obtain an optimal asset size by balancing the effects of past returns, fund flows, market impact, and competition. Competition among hedge funds using similar strategies presents challenges. To survive, funds employ dynamic strategies, move nimbly from market to market, and develop unique strengths. Being an effective market and strategy timer is critical because funds using the right strategy at the right time are more likely to survive. The chapter also analyzes the last stage of the hedge fund life cycle—liquidation or closure. Fund characteristics, risk measures, and style-related factors can help predict fund liquidation.Less
This chapter analyzes the life cycle of hedge funds. Analysis using the Thomson Reuters Lipper TASS database reveals industry-related and fund-specific factors affecting the survival probabilities of hedge funds. Analysis of hedge fund flows and asset sizes can offer insights into a fund’s future survival. Fund performance is a nonlinear function of a fund’s asset size. A fund can obtain an optimal asset size by balancing the effects of past returns, fund flows, market impact, and competition. Competition among hedge funds using similar strategies presents challenges. To survive, funds employ dynamic strategies, move nimbly from market to market, and develop unique strengths. Being an effective market and strategy timer is critical because funds using the right strategy at the right time are more likely to survive. The chapter also analyzes the last stage of the hedge fund life cycle—liquidation or closure. Fund characteristics, risk measures, and style-related factors can help predict fund liquidation.
Nicolaes Tollenaar
- Published in print:
- 2019
- Published Online:
- April 2019
- ISBN:
- 9780198799924
- eISBN:
- 9780191864742
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198799924.003.0001
- Subject:
- Law, Constitutional and Administrative Law
This first chapter provides an overview of the aims of the book. The main objectives of this text are to develop a normative foundation for pre-insolvency proceedings, outline the fundamental ...
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This first chapter provides an overview of the aims of the book. The main objectives of this text are to develop a normative foundation for pre-insolvency proceedings, outline the fundamental principles that underlie a pre-insolvency plan procedure, and set out a framework that outlines what a pre-insolvency plan procedure should resemble in an ideal world. The chapter anticipates the content of the subsequent chapters in the book and then looks at terminology. It defines terms such as plan, plan procedures, insolvency, bankruptcy, liquidation, pre-insolvency, and pre-insolvency proceedings. The chapter outlines pending legislative initiatives seeking to introduce pre-insolvency proceedings both in the Netherlands and at the European level.Less
This first chapter provides an overview of the aims of the book. The main objectives of this text are to develop a normative foundation for pre-insolvency proceedings, outline the fundamental principles that underlie a pre-insolvency plan procedure, and set out a framework that outlines what a pre-insolvency plan procedure should resemble in an ideal world. The chapter anticipates the content of the subsequent chapters in the book and then looks at terminology. It defines terms such as plan, plan procedures, insolvency, bankruptcy, liquidation, pre-insolvency, and pre-insolvency proceedings. The chapter outlines pending legislative initiatives seeking to introduce pre-insolvency proceedings both in the Netherlands and at the European level.
Nicolaes Tollenaar
- Published in print:
- 2019
- Published Online:
- April 2019
- ISBN:
- 9780198799924
- eISBN:
- 9780191864742
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198799924.003.0003
- Subject:
- Law, Constitutional and Administrative Law
This chapter starts with a brief outline of the pre-insolvency plan in the conceptual form proposed in this book. It then goes on to develop a normative foundation for pre-insolvency proceedings and ...
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This chapter starts with a brief outline of the pre-insolvency plan in the conceptual form proposed in this book. It then goes on to develop a normative foundation for pre-insolvency proceedings and formulates the boundary conditions that must be satisfied for their application. As part of the analysis the concepts of fair market value and liquidation value are examined and the differences between price and value are discussed. The chapter explains why pre-insolvency proceedings are to be conceived as a collective debt enforcement instrument of the creditors rather than a rehabilitation instrument of the debtor. The chapter concludes by defining pre-insolvency as the stage at which insolvency has become inevitable and argues that this is the earliest possible triggering event for the use of a collective enforcement procedure, such as the plan mechanism in the proposed form.Less
This chapter starts with a brief outline of the pre-insolvency plan in the conceptual form proposed in this book. It then goes on to develop a normative foundation for pre-insolvency proceedings and formulates the boundary conditions that must be satisfied for their application. As part of the analysis the concepts of fair market value and liquidation value are examined and the differences between price and value are discussed. The chapter explains why pre-insolvency proceedings are to be conceived as a collective debt enforcement instrument of the creditors rather than a rehabilitation instrument of the debtor. The chapter concludes by defining pre-insolvency as the stage at which insolvency has become inevitable and argues that this is the earliest possible triggering event for the use of a collective enforcement procedure, such as the plan mechanism in the proposed form.
Nicolaes Tollenaar
- Published in print:
- 2019
- Published Online:
- April 2019
- ISBN:
- 9780198799924
- eISBN:
- 9780191864742
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198799924.003.0005
- Subject:
- Law, Constitutional and Administrative Law
This chapter looks at valuation. It explains that in a restructuring a paper valuation exercise is needed to establish who still is entitled to value and who is not. In a liquidation, where the ...
More
This chapter looks at valuation. It explains that in a restructuring a paper valuation exercise is needed to establish who still is entitled to value and who is not. In a liquidation, where the business is sold to the highest bidder in the market through a proper sale process, a valuation exercise is not required. In liquidation, the value available for distribution is determined by the market. The chapter then offers a high-level outline of the key steps of the valuation exercise in the context of a restructuring. Terminology is defined, such as asset value, cash flow value, going concern value, goodwill, enterprise value, reorganization value, liquidation value, fair market value, and option value.Less
This chapter looks at valuation. It explains that in a restructuring a paper valuation exercise is needed to establish who still is entitled to value and who is not. In a liquidation, where the business is sold to the highest bidder in the market through a proper sale process, a valuation exercise is not required. In liquidation, the value available for distribution is determined by the market. The chapter then offers a high-level outline of the key steps of the valuation exercise in the context of a restructuring. Terminology is defined, such as asset value, cash flow value, going concern value, goodwill, enterprise value, reorganization value, liquidation value, fair market value, and option value.
Nicolaes Tollenaar
- Published in print:
- 2019
- Published Online:
- April 2019
- ISBN:
- 9780198799924
- eISBN:
- 9780191864742
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198799924.003.0009
- Subject:
- Law, Constitutional and Administrative Law
This chapter provides a detailed summary of the contents of the eight chapters that constitute the main body of the text. It finally considers areas of future research on pre-insolvency ...
More
This chapter provides a detailed summary of the contents of the eight chapters that constitute the main body of the text. It finally considers areas of future research on pre-insolvency proceedings—topics that this book has not considered—such as securities law, corporate law, labour law, tax law, and international aspects of pre-insolvency proceedings. The currently available individual and collective liquidation proceedings are far from optimal, the chapter argues. They provide only for enforcement against individualized assets. In more advanced economies more and more value is tied up in contracts and in the abstract capacity to generate cash flows with a complex of assets and activities that, as an operating whole, are worth more than their inactive constituent parts. Many insolvency systems are not adequately attuned to dealing with value in contracts or in the abstract notion of earning capacity more generally. Developing effective and efficient proceedings for the enforcement of claims against a business as an operational, cash-flow-generating whole, and enabling creditors to recover value captured in earning capacity constitute a field that is ripe for further research and an area in which significant improvement can be achieved.Less
This chapter provides a detailed summary of the contents of the eight chapters that constitute the main body of the text. It finally considers areas of future research on pre-insolvency proceedings—topics that this book has not considered—such as securities law, corporate law, labour law, tax law, and international aspects of pre-insolvency proceedings. The currently available individual and collective liquidation proceedings are far from optimal, the chapter argues. They provide only for enforcement against individualized assets. In more advanced economies more and more value is tied up in contracts and in the abstract capacity to generate cash flows with a complex of assets and activities that, as an operating whole, are worth more than their inactive constituent parts. Many insolvency systems are not adequately attuned to dealing with value in contracts or in the abstract notion of earning capacity more generally. Developing effective and efficient proceedings for the enforcement of claims against a business as an operational, cash-flow-generating whole, and enabling creditors to recover value captured in earning capacity constitute a field that is ripe for further research and an area in which significant improvement can be achieved.