A CEPR/European Science Foundation Network in Financial Markets workshop on `Securities and Derivatives' took place in Louvain-la-Neuve on 3/4 June. The workshop was organized by Ronald Anderson, Professor of Economics at the Université Catholique de Louvain and Research Fellow in CEPR's Financial Economics programme, Sudipto Bhattacharya, Professor of Economics at the Université Catholique de Louvain and at Delhi University, and William Perraudin, Fellow in Economics at Gonville and Caius College, Cambridge, and Research Fellow in CEPR's Financial Economics programme. A full report will appear in issue no. 10 of the Newsletter of the ESF/CEPR Network in Financial Markets, July 1994. The following papers were presented:

`Stock Price Jumps and Their Impact on Option Valuation', Siegfried Trautmann and Michaela Beinert (Universität Mainz)

`Jumps and Stochastic Volatility: Exchange Rate Processes Implicit in PHLX Deutschemark Options', David Bates (University of Pennsylvania)

`Corporate Debt Value, Bond Covenants, and Optimal Capital Structure', Hayne E Leland (University of California, Berkeley)

`The Investment Policy and the Pricing of Equity in a Levered Firm: A Reexamination of the Contingent Claims' Valuation Approach', Marc Chesney (Groupe HEC, Jouy-en-Josas) and Rajna Gibson (Université de Lausanne)

`Finite Sample Properties of the Hedge Ratio', Mthuli Ncube (LSE) and Stephen E Satchell (Trinity College, Cambridge)

`Dynamic Disequilibrium in Financial Asset Markets', Yacine Aït-Sahalia (University of Chicago)

`Capital Markets, Financial Intermediaries, and the Supply of Liquidity in a Dynamic Economy', Paolo Fulghieri (Northwestern University) and Riccardo Rovelli (Università di Cagliari and Innocenzo Gasparini Institute for Economic Research, Milan)

`Excess Volatility and Predictability of Stock Prices in a Trend-Stationary Dividend Model with Learning', Allan Timmermann (Birkbeck College, London, and CEPR)

`The Term Structure, Equity Returns and Yield Premiums on Risky Bonds', Gérard Gennotte (Institut d'Anàlisi Econòmica, Barcelona, and CEPR) and Terry A Marsh (University of California, Berkeley)