Stephens, Eric; Thompson, James R. - In: Journal of Financial Intermediation 23 (2014) 3, pp. 279-299
What market features of financial risk transfer exacerbate counterparty risk? To analyze this, we formulate a model which elucidates important differences between financial risk transfer and traditional insurance, using the example of Credit Default Swaps (CDS). We allow for (heterogeneous)...
