In the face of rising climate risk, financial institutions may adapt by transferring such risk to securitizers that … to climate risk may be a drop in the ocean of cash flows. This paper builds a data set of the entire securitization chain … optimal deals by finding the portfolio weights in an asset demand system that targets return and risk. Extrapolating wildfire …

bonds, greater risk-bearing capacity in the U.S. than the rest of the world, and nominal rigidities. A flight to safety … generates a dollar appreciation and decline in global output. Dollar bonds thus command a negative risk premium and the U ….S. holds a levered portfolio of capital financed in dollars. We quantify the effects of safety shocks and heterogeneity in risk …

assets but left the vast majority of their long-duration assets exposed to interest rate risk. Data from call reports and SEC … filings shows that only 6% of U.S. banking assets used derivatives to hedge their interest rate risk, and even heavy users of …, focusing on short-term gains but risking further losses if rates rose. Instead of hedging the market value risk of bank asset …

Recent supply disruptions catapulted the issue of risk in global supply chains (GSCs) to the top of policy agendas and … the cost-resiliency trade-off. We propose the risk-versus-reward framework from portfolio theory as a good way to evaluate … whether anti-risk policy is justified. We then discuss how exposures to foreign shocks are measured and argue that exposure is …

We study how risk management through hedging impacts firms and competition among firms in the life insurance industry … hedging. Post reform impacted firms have lower risk and fewer negative income shocks. Product market competition is also … financial distress to decrease risk and become more competitive …

dollar is important for risk sharing, but the evidence suggests that it is primarily a device to shift business cycle risk … widespread view that dollarization raises the risk of systemic banking and other crises. Although we identify sources of …

We develop a theory of bank board risk committees. With this theory, such committees are valuable even though there is … no expectation that bank risk is lower if the bank has a well-functioning risk committee. As predicted by our theory (1 …) many large and complex banks voluntarily chose to have a risk committee before the Dodd-Frank Act forced bank holding …

availability and competitive labor markets. Climate risk management by firms mitigates the impact of heat shocks on aggregate …

change and the economy; and (iii) further explore "compound risk" scenarios in which climate risks co-occur with other risks … risk pricing in financial markets; and (iv) better understand and incorporate the process of expectations formation around …