a simple extension of the long-run risk model … risks. Portfolios hedging macro uncertainty have historically earned zero or even significantly positive returns, while …

portfolios could hedge some of the risk of default by taking positions in futures or options markets for residential real estate …

associated with average returns. We show that the resulting portfolios are likely to capture not only the priced risk associated … with the characteristic, but also unpriced risk. We develop a procedure to remove this unpriced risk using covariance …

seldom sufficient and always expensive to hold. In this paper we argue that adding richer hedging instruments to the … point with a simple quantitative hedging model, where optimally used options and futures on the S&P100's implied volatility …

We identify a novel, fiscal hedging motive that helps to explain why governments issue more expensive, long-term debt …

volatility on international trade. A common explanation is the availability of hedging instruments. This paper examines the … empirical validity of this explanation using data on over 1,000 country pairs. Which countries have currency hedging instruments …. There are two main findings. First, there is no evidence in the data to support the validity of the hedging hypothesis …

We study the implications of hedging for firm financing and investment. We do so using an extensive, hand …-collected dataset on corporate hedging activities. Hedging can lower the odds of negative firm realizations, reducing the expected costs … channels (cost of borrowing and investment restrictions) through which hedging affects corporate outcomes. The analysis we …

We model the equilibrium price and quantity of risk transfer between firms and financial intermediaries. Value …-maximizing firms have downward sloping demands to cede risk, while intermediaries, who assume risk, provide less …

also find that long-short positions in equities play a dominant role in the effective hedging of inflation risk over … hedging approach can eliminate nearly 90 percent of the tracking error of more conventional inflation hedging strategies. We …