Purpose – Proposes to investigate the current practices of credit risk management by the largest US-based financial institutions. Owing to the increasing variety in the types of counterparties and the ever-expanding variety in the forms of obligations, credit risk management has jumped to the...

This paper offers an explanation regarding financing strategies of corporations in selected countries in emerging markets. We develop a partial equilibrium model in which preferred shares are issued by value maximizing corporations and bought by return maximizing investors. We concludes that...

This article proposes two extensions of current practice in applying duration gaps for macrohedging the equity position of a financial institution against interest rate risk. The first adjusts for the relative convexities of the asset and liability portfolios, which we call the convexity gap....