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 …

of international equity markets in which only global market risk appears to be priced. When using the Hansen … performance of the II-CAPM (PPP) is mainly attributable to significant hedging against inflation risk. …

This paper uses minimum-variance (MV) admissible kernels to estimate risk premia associated with economic risk … variables and to test multi-beta models. Estimating risk premia using MV kernels is appealing because it avoids the need to 1 …) identify all relevant sources of risk and 2) assume a linear factor model for asset returns. Testing multi-beta models in terms …

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 …