Derivative contracts, swaps, and repos enjoy "super-senior" status in bankruptcy: they are exempt from the automatic … model to assess the effect of this exemption on firms' cost of borrowing and incentives to engage in swaps and derivatives …

We study the pricing of uncertainty shocks using a wide-ranging set of options that reveal premia for macroeconomic … risks. Portfolios hedging macro uncertainty have historically earned zero or even significantly positive returns, while … role for "good uncertainty". Options for nonfinancials are particularly important for spanning macro risks and good …

speculators are capital constrained, and commodity producers have hedging demands for commodity futures. Increases (decreases) in … producers' hedging demand (speculators' risk-capacity) increase hedging costs via price-pressure on futures, reduce producers …' inventory holdings, and thus spot prices. Consistent with our model, producers' default risk forecasts futures returns, spot …

futures options from 1987 to 1991 …-Scholes formula from a two-year training set of daily options prices, and that the resulting network formula can be used successfully … to both price and delta-hedge options out-of-sample. For comparison, we estimate models using four popular methods …

swaps calm crisis situations by both supplementing foreign countries' dollar reserves and by signaling central …-bank cooperation. We show how swaps exposed the Federal Reserve to conditionality and raised fears that they bypassed the Congressional …