experiences of three new payment types. Theseapproaches—both deductive and inductive—arecomplementary ways to understand risk and …

Individual loans contain a bundle of risks including credit risk and interest rate risk. This paper focuses on the … suggest that if the hedge is not subject to basis risk, then hedging dominates a strategy of “do nothing.” Whether hedging … of eliminating all risk via selling. If the hedge is subject to basis risk, then a “do nothing” strategy may dominate the …

example, delivers half the risk reduction possible from diversifying across regions globally. …

Several recent studies have recommended greater reliance on subordinated debt as a tool to discipline bank risk taking …

Foreign exchange transactions are subject to a unique type of settlement risk. This risk ultimately stems from the …

Previous comparative analyses of gross and net settlement have focused on the credit risk of the central counterparty … in net settlement arrangements and on the incentives for participants to alter the risk of the portfolio under net …