This study investigate how debt restructurings have evolved over the decades. Debtors and creditors have a long history of engaging an outsider – a “third party”, such as the IMF – to organise and facilitate debt restructurings.
Stress testing, at its most general level, is an investigation of the performance of an entity under abnormal operating conditions.
The authors show that debt and equity issuance are procyclical for most listed U.S. firms.
The authors estimate a small monthly macroeconometric model (BEAM, for bonds, equity, and money) of the Canadian economy built around three cointegrating relationships linking financial and real variables over the 1975–2002 period.
Risk-Cost Frontier and Collateral Valuation in Securities Settlement Systems for Extreme Market EventsThe authors examine how the use of extreme value theory yields collateral requirements that are robust to extreme fluctuations in the market price of the asset used as collateral.
Many countries prohibit large shareholdings in their domestic banks.The authors examine whether such a restriction restrains competition in a duopolistic loan market. Blockholders may influence managers' output decisions by choosing capital structure, as in Brander and Lewis (1986).
Over the past few years, the ability of the United States to finance its current account deficit has been facilitated by massive purchases of U.S.
The author describes a model with a corrupt banking system, in which bankers knowingly lend at market interest rates to back projects riskier than the market rate indicates.