Firms with credit-default swaps (CDS) traded on their debt may face "empty creditors" as hedged creditors have less … bank-firm CDS net notional and credit exposures we find that the probability of default for CDS firms drops when the effect … constrained embed the empty creditor effect into their probability of default estimates of affected firms to a larger extent. So …

that time in general resilient to the default of large banks, i.e. did not exhibit substantial contagion risk. Even though …

How does bank distress impact their customers' probability of default and trade credit availability? We address this … bank-induced increase of firms' probabilities of default. Moreover, bailouts tend to reduce trade credit availability and …

We develop a model of bank risk-taking with strategic sovereign default risk. Domestic banks invest in real projects … their default risks through purchases of bonds. But, for high debt levels, this influence is lost since bank and government … default are perfectly correlated. Banks fail to account for how their bond purchases influence the government's default …