We present a novel empirical benchmark for analyzing credit risk using “pseudo firms” that purchase traded assets … corporate frictions do not seem to explain excessive observed credit spreads, but, instead, a risk premium for tail and …

We measure credit risk premia - prices for bearing corporate default risk in excess of expected default losses - using … Markit CDS and Moody's Analytics EDF data. We find dramatic variation over time in credit risk premia, with peaks in 2002 … expected default losses, median credit risk premia fluctuate over time by more than a factor of ten. Credit risk premia comove …

We study a competitive credit market in which lenders with partial knowledge of loan repayment use one of three … wants to maximize the net social return to borrowing, we study two interventions in the credit market to achieve this …

large adverse effect on the supply of international credit offered to them. We also show that if international creditors are … supply of credit to dry up completely. We therefore offer one possible explanation for why emerging markets may find …