bankruptcy and to curb the firm's risk taking outside bankruptcy. We analyze the role of such implicit guarantees in the context … expansion in risk-taking opportunities of money market funds during the period of August 2007 to August 2008. We find that a … financial institutions with higher equity take on less risk than those sponsored by financial institutions with lower equity …

and risk aversion of three. The cost of illiquidity can easily exceed 10% if the hedge fund manager can arbitrarily …

. More risk-averse entrepreneurs default earlier, but also choose higher leverage, even though leverage makes his equity more … risky. Non-diversified entrepreneurs demand both systematic and idiosyncratic risk premium. Cash-out option and external … equity further improve diversification and raise the entrepreneur's valuation of the firm. Finally, entrepreneurial risk …

risk capital starting August 8th. Our simulations point to two unwinds---a mini-unwind on August 1st starting at 10:45am …

) for risk, long-term illiquidity, management and incentive fees charged by the general partner (GP). We analyze the LP …, LPs may just break even, net of management fees, carry, risk, and costs of illiquidity. …