The implicit assumption that governments will bailout financial institutions under distress can generate negative incentives for the development of a sound financial system. In the Brazilian case, the current administration of Fernando Henrique Cardoso was only able to significantly reduce its...

Determinants of the aggregate default rate on high-yield bonds have been of interest at least since 1990 - 1991, when the proportion of defaulting issued reached effectively its highest level since the Great Depression. With recovery by the mid-19902, and a new record volume of issuance in 1993,...