This paper investigates two elements of agency costs, namely the wealth transfer and the value destruction problems, associated with the equity-conversion and writedown CoCo bonds. By focussing on the costs as those stemming from the deviation from absolute priority rule (DAPR), we derive the...

We compute actuarially fair contribution rates (aggregating both employers' and employees' contributions) for the USS pension scheme, using UK life tables and market yield curves. The fair rate is sensitive to life expectancy and the level of real yields, neither of which appears stationary. So...

The convex payoffs for equity holders in a corporate structure results in agency costs and moral hazard problems. The implicit government guarantee for banks accentuates these. We believe that the Basel III related bail-in contingent convertible (CoCo) structures do only not solve these...

This paper develops a microeconomic model of directed search, where firms are heterogeneous in the number of vacancies advertised, and wages affect workers' choices when both applying for jobs and accepting a job. An aggregate matching function is derived, which incorporates workers' preferences...