problems in the home country, with a lesser factor being the weak performance of the foreign subsidiary. …

reducing the risk of trade transactions. This paper employs banking data from the U.S. to document new empirical patterns … intermediate levels of risk. Moreover, they rely more on this instrument in times when funding is cheap and aggregate uncertainty … is high. However, firms do not respond uniformly to changes in global interest rates and risk. Those that ship to high …

these patterns. Initially, as there is uncertainty about the reliability of the trading partner, payment risk is a key …

We argue that risk sharing motivates the bank-wide structure of bonus pay. In the presence of financial frictions that … make external financing costly, the optimal contract between shareholders and employees involves some degree of risk … to rationalize with incentive theories of bonus pay - but support an important risk sharing motive. In particular …

risk of firm default …

, in which sovereign risk is limited through diversification and some form of seniority. These assets would be held by …

mechanisms for bank risk-taking studied in a large partial equilibrium literature. We show that competitive equilibriums maximize … welfare and yield an optimal level of banks' risk of failure. This result holds even though the risk of failure of competitive …