Farkas, Walter; Koch Medina, Pablo; Munari, Cosimo - 2013
special attention to the property of cash subadditivity, which has been recently proposed as an alternative to cash additivity … to deal with defaultable bonds. For important examples, we provide characterizations of cash subadditivity and show that …, when the eligible asset is a defaultable bond, cash subadditivity is the exception rather than the rule. Finally, we …