sizable macroeconomic shocks with only a moderate impact on their solvency. Although bank competition remains limited, it has …

instruments can explain much of the in-sample variation in borrowing spreads, this fails to materialize in hedging strategies that … and innovation costs could justify the limited interest for this type of hedging in practice …

passive versus active hedging. In addition, it outlines a set of widely accepted best practices in managing currency risk and … presents some of the main hedging instruments in the OTC and exchange-traded markets. The paper also provides some data on the … use of financial derivatives instruments, and hedging practices by U.S. firms. …

This paper uses a dynamic optimization model to estimate the welfare gains of hedging against commodity price risk for … commodity-exporting countries. The introduction of hedging instruments such as futures and options enhances domestic welfare … through two channels. First, by reducing export income volatility and allowing for a smoother consumption path. Second, by …

. Theiroverdependence on bank credit as a source of funding could be reduced and their management of seasonal risk could be improved through …