Showing 1 - 10 of 61
Since the financial crisis, attention has focused on central counterparties (CCPs) as a solution to systemic risk for a variety of financial markets, ranging from repurchase agreements and options to swaps. However, internationally accepted standards and the academic literature have left...
Persistent link: https://www.econbiz.de/10009323064
risks implied by the cross-sectional heterogeneity in bank behavior in short-term lending markets. Strategies in, and … reliance on the payments system as well as special liquidity-supplying tools provided by the central bank seem to be more …
Persistent link: https://www.econbiz.de/10009326649
have a funding advantage over small banks after controlling for bank-specific and market risk factors. Working with hand …
Persistent link: https://www.econbiz.de/10010723573
The Basel capital framework plays an important role in risk management by linking a bank's minimum capital requirements …
Persistent link: https://www.econbiz.de/10008502640
Bank liability guarantee schemes have traditionally been viewed as costless measures to shore up investor confidence … and prevent bank runs. However, as the experiences of some European countries, most notably Ireland, have demonstrated … rollover risks of a bank and a government, which are connected through the government’s guarantee of bank liabilities. We show …
Persistent link: https://www.econbiz.de/10010691319
I study rollover risk in the wholesale funding market when intermediaries can hold liquidity ex ante and are subject to fire sales ex post. Precautionary liquidity restores multiple equilibria in a global rollover game. An intermediate liquidity level supports both the usual run equilibrium and...
Persistent link: https://www.econbiz.de/10010779301
The literature on market timing of long-term debt issuance yields mixed evidence that managers can successfully time their debt-maturity issuance. The early results that are indicative of debt-maturity timing are not robust to accounting for structural breaks or to other measures of debt...
Persistent link: https://www.econbiz.de/10008495569
This paper examines Canadian and other foreign firms that have been involuntarily delisted from major U.S. exchanges. I find that, for most countries, less than 10% of firms get delisted from a U.S. exchange during my sample period. For Canada, more than 25% of firms listed in the United States...
Persistent link: https://www.econbiz.de/10005162537
An international initiative to increase the use of central clearing for OTC derivatives emerged as one of the reactions to the 2008 financial crisis. The move to central clearing is a fundamental change in the structure of the market. Central clearing will help control counterparty credit risk,...
Persistent link: https://www.econbiz.de/10010595732
This paper estimates the implied cost of equity for Canadian and U.S. firms using a methodology based on the dividend discount model and utilizing firms' current stock price and analysts' forecasted earnings. We find that firm size and firm stock liquidity are negatively related to cost of...
Persistent link: https://www.econbiz.de/10005673322