on solvent banks leading to bank panics. But financial crises of the last two decades have not fit the mold. A new …

This paper examines the use of credit derivatives by US bank holding companies from 1999 to 2003 with assets in excess … of one billion dollars. Using the Federal Reserve Bank of Chicago Bank Holding Company Database, we find that in 2003 … represent on average two thirds of the assets of bank holding companies with assets in excess of $1 billion. Few banks are net …

evidence to date points in the opposite direction, that is, towards overvaluation of bank assets. …

firms are more likely to have a multi-tiered capital structure consisting of both secured bank debt with tight covenants and … subordinated non-bank debt with loose covenants. Further, while high credit quality firms enjoy access to a variety of sources of … discretionary flexible sources of finance, low credit quality firms rely on tightly monitored secured bank debt for liquidity. We …

temporary increase in the government protection of non-deposit liabilities and bank assets. In most cases, these guarantees have …