Patrice Fontaine

Synthesis of Pyrroles by Consecutive Multicomponent Reaction/[4 + 1] Cycloaddition of alpha -Iminonitriles with Isocyanides

[4 + 1] Cycloaddition of alpha,beta-unsaturated imidoyl cyanide (2-cyano-1-azadienes) with isocyanides in the presence of a catalytic amount of AlCl(3) afforded polysubstituted 2-amino-5-cyanopyrroles in good to excellent yields. In combination with the IBX/TBAB-mediated oxidative Strecker reaction, this important heterocycle is readily synthesized in two steps from simple starting materials.

One-Pot Three-Component Synthesis of alpha -Iminonitriles by IBX/TBAB-Mediated Oxidative Strecker Reaction

The reaction of aldehydes, amines, and TMSCN in the presence of 2-iodoxybenzoic acid (IBX) and tetrabutylammonium bromide (TBAB) afforded alpha-iminonitriles in good to excellent yields under mild conditions. The presence of TBAB is essential for this transformation. The methodology was applied to a two-step synthesis of indolizidine via a microwave-assisted intramolecular cycloaddition of alpha-iminonitrile.

Information Precision, Noise, and the Cross-Section of Stock Returns

We derive a cross-sectional asset pricing measure from a noisy multi-asset rational expectations equilibrium model. The measure is based on the time-series covariance of an asset’s returns and security prices. Empirically, stocks with a measure one standard deviation above and below the average have returns that dier by 0.36% the following month (4.44% per annum) which is statistically signicant at the 1%-level. Results remain signicant after including variables such as stock market capitalization, book-to-market ratio, and the probability of information-based trading. Our measure can be understood as a proxy for information risk and/or supply uncertainty. We show the two explanations are theoretically intertwined.

Interest rates parity and no arbitrage as equivalent equilibrium conditions in the international financial assets and goods markets

In this paper, we consider a two-period consumption model with many financial assets. In the spirit of Hart, consumers purchase financial assets in period 0 and consume in period 1. We differ from Hart by considering that each agent is a country. We provide conditions for the existence of an equilibrium in both international financial assets and goods markets. First, we introduce a weaker notion of Uncovered Interest (rate) Parity (UIP) called Weak Uncovered Interest (rate) Parity (WUIP), and we show its equivalence to the no-arbitrage condition in the international financial markets. Second, we introduce the concept of common no arbitrage and we show its equivalence to UIP. These results bridge concepts of no arbitrage in general equilibrium theory and financial microeconomics and of interest parity in international financial macroeconomics. In a multi-country model with many currencies and only one good, we introduce a country-specific conversion rate which transforms the returns on assets valued in local currency into units of physical good. We the define also the exchange rates between currencies of different countries. The UIP condition is required for the existence of an equilibrium in both international financial assets and goods markets and for the existence of the Law of One Price.

Exploiting Industry Momentum with Sector Funds: The Case of the European Market

Academics and practitioners show a tremendous interest in the trending behavior of stock prices. A wide empirical literature establishes that common stocks exhibiting high returns on a period of 3–12 months (past winners) will overperform on subsequent periods. Moreover, past losers continue to be losers on future periods. This phenomenon, called momentum, represents one of the most important challenges for the concept of market efficiency. In practice, financial planners argue that momentum is one of the most effective investment vehicles.