A covenant is a special set of clauses in a firm's debt contract restricting business policy and allowing creditors to take specified action should the covenant terms be violated. Three main reasons for the inclusion of covenants in debt contracts are accounted for in the literature: they (1)...

We find that the increased use of securitization activity in the banking sector prior to the 2007- 2009 crisis augmented the effect of competition on realized bank risk (i.e. more intense competition and greater use of securitization is correlated with higher levels of realized risk) during the...

We examine how bank competition in the run-up to the 2007-2009 crisis affects banks' systemic risk during the crisis. We then investigate whether this effect is influenced by two key bank characteristics: securitization and bank capital. Using a sample of the largest listed banks from 15...