Determinants of the aggregate default rate on high-yield bonds have been of interest at least since 1990 - 1991, when the proportion of defaulting issued reached effectively its highest level since the Great Depression. With recovery by the mid-19902, and a new record volume of issuance in 1993,...

We document cash management patterns for households that are at odds with the predictions of deterministic inventory models that abstract from precautionary motives. We extend the Baumol-Tobin cash inventory model to a dynamic environment that allows for the possibility of withdrawing cash at...

type="main" <p>High yield bond investors spend a great deal of time studying covenants. They even hire specialized consultants to help them interpret the dense language of indentures. But for all that, does a company's decision to offer strong rather than weak covenants—or to offer covenants at...</p>

Faulty ratings of mortgage-related collateralized bond obligations played a prominent role in the financial crisis of 2008. Some critics charge that the rating agencies did not merely make honest mistakes, but were hopelessly conflicted by their practice of collecting revenue from the bond...