termination via prepayment or default affects optimal risk-sharing. The broad conclusion of the analysis is that potential … of optimal risk-sharing in mortgage contracts. But since only a small literature has studied this question, more research … mortgage termination makes higher risk exposure for borrowers optimal. …

We examine the impact of fintech start-ups on the performance and default risk of traditional financial institutions … start-up formations and the default risk of traditional financial institutions. Fintech start-up formations decrease stock … return volatility of incumbent institutions and decrease the systemic risk exposure of financial institutions. The findings …

, since retrading allows partial insurance of idiosyncratic risk in an incomplete markets setting. This lowers the issuers … idiosyncratic risk rises during recessions, so does the value of the service flows bestowing the safe asset with a negative ß. This …

In this article we use a stochastic model with one representative firm to study business tax policy under default risk … default costs if its objective function is welfare (tax revenue) …