using a traditional and a novel approach, and offers valuable lessons learned when interpreting these risk measures. Among … interest rate risk is not the only risk that needs to be considered when conducting risk management with CMOs. …

to "cream-skim," meaning to transfer risk to naive, uninformed, or unconcerned investors through the sale or …. They find that the likelihood of sale increases with risk along dimensions observable to banks but not likely observed or …

to insure counterparty risk by clearing those contracts through a CCP that uses novation and mutualization. As netting is … inefficient allocation of default risk relative to the gains from customization, a transfer scheme is needed. A CCP can implement …

authors examine whether insurance against college-failure risk can be offered, taking into account moral hazard and adverse … failure risk. The authors find that optimal insurance raises the enrollment rate by 3.5 percent, the fraction acquiring a …

This paper examines risk-adjusted performance measures in banking, which are used as a guide for efficient asset …. Traditional measures of performance are contrasted with the portfolio-based risk-adjusted measures using a unique detailed micro …

The authors study the effects of changes in uncertainty about future fiscal policy on aggregate economic activity … consolidation inevitable, there is considerable uncertainty about the policy mix and timing of such budgetary adjustment. To … evaluate the consequences of this increased uncertainty, the authors first estimate tax and spending processes for the U …