We develop a framework to quantify credit risks of non-traditional mortgage products (NMPs). Ex ante probabilities of default are caused by willingness-to-pay and ability-to-pay problems and the high default rates for NMPs confirm that payment shock is a critical default risk indicator. Monte Carlo simulations are conducted using three correlated stochastic variables (mortgage interest rate, home price, and household income) under normal and stressed economies. Results confirm that the default risk of 2/28 and option ARM contracts requiring a minimum monthly interest payment have a greater probability of default than other mortgage products in all economic scenarios. Additionally, the credit risk of NMPs is primarily systematic risk, suggesting that these products should require higher risk-based capital. Due to the non-linear distribution of credit risk, even the advanced internal-based rating approach of the Basle II framework can understate the risk involved in these NMPs.

This literature review examines the default mode network (DMN) and how its role in self related processing and narrative selfhood relates to well-being. The essay explores the DMN in three levels of activity: Firstly in normal function, where mind-wandering is positively correlated with dissatisfaction; Secondly its abnormal function in depression, characterized by excessive activity and rumination; Thirdly in its arguably improved function during mindfulness and meditation, where lower activity is associated with higher well-being, decreased mind-wandering and altered sense of self. The essay shows a relationship between the DMN and well-being, where higher activity correlates with lower well-being.

Skolverket (2019) always underlines the importance of implementing democratic values onto the students. But is this always easy to apply in the classroom? The purpose of this work is to examine how you can work with literature in different ways in the Swedish subject, with the focus of a multicultural and LGBTQ+ perspective. This work is for teachers and teacher students to create a bigger understanding around the possibilities of using literature. Our framing question is the following: “How can teachers work with literature texts from a multicultural and LGBTQ+ perspective, and how are the students affected?”. The method that has been used to produce this work has been by using databases to find information. Hence, there have been different selection methods to determine the usefulness and relevance of the different sources. The result showed that there are many different ways to use literature in the classroom, some with a better outcome than others. Furthermore, the lack of knowledge on how to work with or find multicultural and LGBTQ+ literature became visible. Nevertheless, it was noticed that both literature education from a multicultural and LGBTQ+ perspective is needed to create democratic values, since it develops the students critical thinking, their default natural setting, compassion and more. Through challenging students' default natural setting, the democratic society can be developed.

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In my first chapter I follow the methodology put forth by Bohn(1998), the market-based sustainability method to measure whether the sovereign debt is sustainable or not. I work with a panel of 125 countries for 26 years and along with incorporate different institutions ratings by ICRG’s political risk ratings. In my analysis I find out that the debt on average is sustainable for countries up to certain extent and thus giving us an inverted U shape debt-exports curve. I use country exports to find out if the debt is sustainable or not. I also find that better institutions do give an edge to countries when it comes to borrowing as it lowers the risk expectations on the lenders part. The findings do vary based on the country’s income level and based on its geographical location.

Awe, an emerging topic within the field of modern psychology, has shown to have many benefits, including improved health for mind and body. This essay is trying to explore what links there are between the spiritual concept of the numinous established by the religious scholar Rudolf Otto and the definition of awe put forward by one of the most prominent and influential researchers in the field of Self-Transcendent Emotions, Dacher Keltner. Is the modern concept of awe and the numinous the same thing with similar health benefits? Through a content analysis the study will show that there are many common denominators between the two phenomena in question and that a healthy outcome of spiritual awe is not just possible but common for human beings. Yet that the concept of the numinous still has in some ways its own unique position. Suggestions are made on how further research could be done regarding how to stimulate awe and through that perhaps spirituality, for the benefit of health and the connection with others.

Feelings of social connection are important to maintain physical and psychological well-being. Perceived social isolation, or loneliness, is the subjective experience of feeling socially isolated and may be a direct threat to our health. During recent years, an increasing amount of people report high levels of loneliness, potentially brought on by the COVID-19 pandemic and its restrictions. Recent research suggests that the brain’s default mode network (DMN), a neural network active at wakeful rest, is related to these experiences. This paper aimed to systematically review alterations in the DMN in socially connected and lonely individuals. I searched PubMed and Scopus to find studies using self-report measures of social connection or loneliness, and functional or structural neuroimaging methods on healthy adults. Nine studies were included in this review. Generally, core regions of the DMN typically involved in episodic memory and self-referential processing showed increased activity in lonely individuals and decreased activity in socially connected individuals. These findings may reflect how lonely individuals ruminate about past social events while socially connected individuals attend less to the self. However, methodological heterogeneity between studieslimits the conclusions that can be drawn based on these results.

Rumination, or extensive mind wandering defines one of the key cognitive symptoms of major depressive disorder (MDD). Several symptoms included in the psychiatric disorder have been associated with altered connectivity within the large-scaled system default mode network (DMN). Although it’s well-known that antidepressant treatment, such as selective serotonin reuptake inhibitor (SSRI) and serotonin norepinephrine reuptake inhibitor (SNRI) tend to positively affect symptoms and alterations of MDD, results are inconsistent regarding DMN connectivity pre-and-post treatment. This systematic review aims to compile findings from studies investigating DMN connectivity in MDD patients’ pre-and post SSRI and SNRItreatment, and to find possible correlations with symptomatic improvements. Five articles were included for further analysis after the literature search in MEDLINE ESBSCO and Scopus. Main findings are in alignment with previous research and suggest both hypo-and hyper DMN connectivity at baseline in MDD patients, and connectivity patterns significantly similar to healthy controls following antidepressant treatment. Future research might consider placebo controlled trials for more diverse, and quantified results, and also consider further investigation on both first-line treatments and other promising antidepressants.

In this thesis, we study how sovereign credit default swaps are able to measure systemic risk as well as how they can be used to construct optimal portfolios to minimize risk. We define the clustering coefficient as a proxy for systemic risk and design an optimization problem with the goal of minimizing the mean absolute deviation of the clustering coefficient on a group of nine European countries. Additionally, we define a metric we call the diversity score that measures the diversification of any given portfolio. We solve this problem for a baseline set of parameters, then spend the remainder of the thesis modifying these parameters to investigate how the optimal solution and diversity score are impacted.

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