borrowers with the highest ex ante default risk, but had no effect for the rest of the borrowers. The change in repayment rates …

We present a dynamic general equilibrium model with agency costs where: i) firms are heterogeneous in the risk of … corporate credit risk relative to the US, and when european firms value more than US firms the flexibility and information …

This paper explores the risk structure of interest rates. More specifically, we ask whether yields on industrial and … commercial bonds indicate that market participants base their evaluations of a bond issue's default risk on agency ratings or on … equally reliable measures of risk. Although the accounting measures also affect yields on new or recently reviewed issues, our …

discrete signal based on that variable, theory suggests that the signal should have no bearing on behavior conditional on the …