This paper develops a model in order to explore how a banks equity stake in a competitor of a borrower affects the financing relationship with the borrower and product market outcomes.

This paper shows how financial contracts might be redesigned to allow for banks to manage the idiosyncratic component for their own accounts.

This paper develops a contracting framework in order to explore the effects of credit derivatives on banks incentives to monitor loans, their incentives to intervene, and, ultimately, borrowers incentives to perform.