By analyzing four case studies of merger attempts between electric utilities, the authors conclude that there are not strong incentives for a wave of combinations in the industry. Potential synergy gains do not provide a strong motivation since they are likely already being captured through...

By exposing itself to greater risks on invested funds the company can also increase its expected returns. Because there are risks involved with both the insurance and investment operations, a major problem for an insurance company is to determine just how the two types of risks are to be...

This article extends previous bond valuation models to account for more realistic assumptions regarding financial distress. Realized value of an individual bond under severe financial distress will reflect the expected outcome of credit-event negotiations and the relative priority listing of the...