Search Results - subject:"Security Design"

Strategic Liquidity Supply and Security Design

Biais, Bruno; Mariotti, Thomas - Suntory and Toyota International Centres for Economics … - 2003

We study how securities and trading mechanisms can be designed to optimally mitigate the adverse impact of market imperfections on liquidity. Asset owners seek to obtain liquidity by selling their claims on future cash-flows, on which they have private information. Our analysis encompasses both...

Persistent link: https://www.econbiz.de/10005310248

Security Design: Signaling versus Speculative Markets

Chemla, Gilles; Hennessy, Christopher - C.E.P.R. Discussion Papers - 2011

We determine optimal security design and retention of asset-backed securities by a privately informed issuer with …

Persistent link: https://www.econbiz.de/10008915803

Contingent Capital: The Case for COERCs

Pennacchi, George G.; Vermaelen, Theo; Wolff, Christian C - C.E.P.R. Discussion Papers - 2010

In this paper we propose a new security, the Call Option Enhanced Reverse Convertible (COERC). The security is a form of contingent capital, i.e. a bond that converts into equity when the market value of equity relative to debt falls below a certain trigger. The conversion price is set...

Persistent link: https://www.econbiz.de/10008677232

Venture Capital Meets Contract Theory: Risky Claims or Formal Control?

CESTONE, Giacinta - Departament d'Economia i Història Econòmica, … - 2001

conversion of her preferred stocks into common stocks. Keywords: Venture Capital, Control Rights, Security Design …(eitherR or zero), no prediction can be drawn on the impact of security design on real control and entrepreneurial initiative … the market for funds. 7 Furthermore, in contrast to the present work, the paper does not make any security design …

Persistent link: https://www.econbiz.de/10005168511

ON A FINITE HORIZON STARTING AND STOPPING PROBLEM WITH RISK OF ABANDONMENT

DJEHICHE, BOUALEM; HAMADÈNE, SAID - In: International Journal of Theoretical and Applied … 12 (2009) 04, pp. 523-543

We address the issue of finding a strategy to sustain structural profitability of an investment project, whose production activity depends on the market price of a number of underlying commodities. Depending on the fluctuating prices of these commodities, the activity will either continue until...

Persistent link: https://www.econbiz.de/10004983227

Financial Contracting: A Survey of Empirical Research and Future Directions

Roberts, Michael R.; Sufi, Amir - In: Annual Review of Financial Economics 1 (2009) 1, pp. 207-226

We review recent evidence and future directions for empirical research on financial contracting in the context of corporate finance. Specifically, we survey evidence pertaining to incentive conflicts, control rights, collateral, renegotiation, and interactions between financial contracts and...

Persistent link: https://www.econbiz.de/10008777005

Informational leverage: the problem of noise traders

Instefjord, Norvald; Sasaki, Kouji - In: Annals of Finance 4 (2008) 4, pp. 455-480

Persistent link: https://www.econbiz.de/10005701377

Combination notes: market segmentation and equity transfer

Schaber, Albert - Volkswirtschaftliche Fakultät, … - 2008

This paper empirically analyzes a particular type of notes observed in securitization transactions: combination notes. Combination notes are formed by combining parts of two or more tranches of securitization transactions, where one part usually consists of a share of the first loss piece. It is...

Persistent link: https://www.econbiz.de/10005157496

Combination notes: market segmentation and equity transfer

Schaber, Albert - Volkswirtschaftliche Fakultät, … - 2008

Persistent link: https://www.econbiz.de/10010550654

Speculative securities

Marín, José M.; Rahi, Rohit - Department of Economics and Business, Universitat … - 1997

A speculative security is an asset whose payoff depends on a random shock uncorrelated with economic fundamentals (a sunspot) about which some traders have superior information. In this paper we show that agents may find it desirable to trade such a security in spite of the fact that it is a...

Persistent link: https://www.econbiz.de/10005772444