We present a dialogue on Counterparty Credit Risk touching on Credit Value at Risk (Credit VaR), Potential Future … Adjustment (DVA), DVA Hedging, Closeout conventions, Netting clauses, Collateral modeling, Gap Risk, Re-hypothecation, Wrong Way … Risk, Basel III, inclusion of Funding costs, First to Default risk, Contingent Credit Default Swaps (CCDS) and CVA …

This study investigates the effect of corporate hedging on stock price crash risk. We test two competing hypotheses …. Under the transparency hypothesis, hedging reduces a firm's information asymmetry and lowers crash risk. Under the opacity … hypothesis, hedging decreases financial reporting quality and increases crash risk. Using a comprehensive sample of firms from …

a financial system. With a static model on financial institutions' risk-taking behavior, we quantify the impact on … systemic risk in the cross-sectional dimension when imposing a capital requirement. Although imposing a capital requirement can … lower individual risk, it enhances the systemic linkage within the system at the same time. With a proper systemic risk …

the impact of micro-prudential regulation on the systemic risk in a cross-sectional dimension. We construct a static model … for risk-taking behavior of financial institutions and compare the systemic risks in two cases with and without a capital … requirement regulation. In a system with a capital requirement regulation, the individual risk-taking of the financial …

This paper examines the impact of futures introduction on Bitcoin price crash risk. Using the difference …-in-difference (DID) approach, we find that the crash risk of Bitcoin, proxied by negative coefficient of skewness (NCSKEW) and down … rather than increases Bitcoin price crash risk …

stock crash risk is supported by multiple approaches, including propensity score matching and entropy balancing analysis …

volume and future stock price crash risk. This relation is evidently more pronounced among firms with higher information … firms with options trading have higher future crash risk than firms without options trading. We further show in a difference …-in-difference analysis that firms experience an increase in crash risk immediately after the listing of options. The results suggest that …

bonds and their incentive effects in a structural model with endogenous default, debt rollover, and tail risk in the form of … boundary can be at one of two levels: a lower level with a lower default risk or a higher level at which default precedes …

compensation. We argue that excessive risk taking in the financial sector originates from the shareholder moral hazard created by … shareholder risk-shifting incentives. The decisive advantage of this approach compared to existing regulation is that the … regulator does not need to be able to properly measure the bank investment risk, which has been shown to be a difficult task …