diffusion of collateral agreements among OTC derivatives market counterparties, and on the consequent change of paradigm for …

We present a theory of banking regulation affecting procedural compliance in monitoring collateral in secured debt …, no ex post strategy is available to the regulator once the bad state has occurred. We argue that the collateral value is …

collateralization. We examine the impact of bilateral default risk and collateral rules on the marking to market of longevity swaps, and … show how longevity swap rates must be determined endogenously from the collateral flows associated with the marking … presence of symmetric default risk, but more pronounced when default risk and/or collateral rules are asymmetric. Our results …

). By working out the sequence of market transactions, we show that the effectiveness of collateral in avoiding equilibrium …, the separation of borrower by means of sufficient collateral does not impede the emergence of credit rationing, which … suitable endowments, the use of collateral in credit contracts could not be a socially efficient screening-device. Our …

in terms of screening of borrowers and in collateral requirements. We find robust evidence that during upturns, riskier …

We investigate whether collateral helps to solve adverse selection problems. Theory predicts a negative relationship … between presence of collateral and risk premium, as collateral constitutes a signalling instrument for the borrower to be … collateral and risk premium. We include five proxies for the degree of information asymmetries, measuring opacity of financial …