, borrowers take on less risk exposure than non-borrowers. A larger risk exposure by borrowers may occur as well, however …, borrowers' default policies render binary options useful instruments for lenders in hedging the credit-risk component of their … and volatility in contrast to the exogenously assumed constant mean and volatility in many credit risk models. We consider …

assess and price the risk of default. In order to analyse default risk in the macroeconomy, a simple general equilibrium … model with banks and financial intermediation is constructed in which default-risk can be priced. It is shown how the credit … spread can be attributed largely to the risk of default and how excess loan creation may emerge due different attitudes to …

to farmer investment is uninsured risk: when provided with insurance against the primary catastrophic risk they face … basis risk associated with the index insurance, and with imperfect trust that promised payouts will be delivered. …

their growth. Economic theory suggests uncertainty can cause firms to delay investments until uncertainty is resolved. We … that, contrary to what they profess, macroeconomic and political risk is not inhibiting the investment behavior of …

absolute risk level. …

This paper develops a theoretical model in which firms may choose multiple banking relationships to reduce the risk …

two ideas that have been analysed separately in previous work: some authors argue that due to risk-shifting, debt …

In the recent theoretical literature on lending risk, the common pool problem in multi-bank relationships has been …

things, the theory predicts that the difference in leverage between a debt-friendly bankruptcy code (such as the UK’s) and a … support for the theory by comparing leverages in the US and the UK for the period 1990 to 2002. Our tests use two (inverse … find the theory is strongly backed by the data. The results are robust to considerations such as employing net leverage …