When a sovereign faces the risk of debt default, it may be tempted to expropriate the private sector. This may be one … reason why international investment in private companies has to take into account the sovereign risk. But the likelihood of … sovereign risk transferring to corporates and increasing their risk of default may be mitigated by legal institutions that …

This paper examines how risk in trading activity can affect the volatility of asset prices. We look for this … swap spread tends to converge to a long-run level, although trading risk can sometimes cause the spread to diverge from … that level. -- convergence trading ; interest rate swaps ; swap spread ; repurchase contracts ; trading risk ; volatility …