with banking and insurance sectors, we show that credit risk transfer can be beneficial when banks face uniform demand for …Some have argued that recent increases in credit risk transfer are desirable because they improve the diversification … of risk. Others have suggested that they may be undesirable if they increase the risk of financial crises. Using a model …

with banking and insurance sectors, we show that credit risk transfer can be beneficial when banks face uniform demand for …Some have argued that recent increases in credit risk transfer are desirable because they improve the diversification … of risk. Others have suggested that they may be undesirable if they increase the risk of financial crises. Using a model …

it offers relatively low expected shortfall risk, good expected payouts for the retiree during his life, and some bequest …

equity premium and longevity insurance in her retirement portfolio. Even without bequests, she will not fully annuitize …. Welfare gains from this strategy can amount to 40 percent of financial wealth (depending on risk parameters and other …

Mutual insurance companies and stock insurance companies are different forms of organized risk sharing: policyholders … relevant to raising capital, selling policies, and sharing risk in the presence of financial distress. Up-front capital is … necessary for a stock insurer to offer insurance at a fair premium, but not for a mutual. In the presence of an ownermanager …

We analyse a 2-period competitive insurance market which is characterized by the simultaneous presence of standard … which patient consumers use high effort and buy a profit-making insurance contract with high coverage, whereas impatient … positive profits and the opposite of adverse selection with regard to risk types can sometimes be observed empirically. …

Mutual insurance companies and stock insurance companies are different forms of organized risk sharing: policyholders … relevant to raising capital, selling policies, and sharing risk in the presence of financial distress. Up-front capital is … necessary for a stock insurer to offer insurance at a fair premium, but not for a mutual. In the presence of an ownermanager …

positive correlation between the amount of insurance coverage and risk type, as in the standard economic models of adverse …We examine insurance markets with two types of customers: those who regret suboptimal decisions and those who don.t. In … selection, but there also exist separating equilibria that predict a negative correlation between the amount of insurance …

insurance sector can cause the current value of banks assets to be less than the current value of their liabilities so the banks … are insolvent. In contrast, if historic cost accounting is used, banks are allowed to continue and can meet all their …

insurance sector can cause the current value of banks’ assets to be less than the current value of their liabilities so the … banks are insolvent. In contrast, if historic cost accounting is used, banks are allowed to continue and can meet all their …