Diversification by banks affects the systemic risk of the sector. Importantly, Wagner (2010) shows that linear … diversification increases systemic risk. We consider the case of securitization, whereby loan portfolios are sliced into tranches with … different seniority levels. We show that tranching offers nonlinear diversification strategies, which can reduce the failure …

Purpose – The purpose of this paper is to explore the roles of diversification, hedging, and a third risk … diversification and hedging, a simple mathematical model is offered for reducing the standard deviation of a portfolio of traditional … “insurance” and/or other financial risks. Findings – The findings show that: neither diversification nor hedging, by itself, can …

diversification into wildlife conservation are likely to be high only in those rural areas that can sustain wildlife populations … managed through diversification into community-based wildlife conservation and provides paramount evidence that wildlife …

seem to have a comparative advantage with respect to diversification and communication tasks. Research limitations …

Purpose – The purpose of this paper is to explore the roles of diversification, hedging, and a third risk … diversification and hedging, a simple mathematical model is offered for reducing the standard deviation of a portfolio of traditional … “insurance” and/or other financial risks. Findings – The findings show that: neither diversification nor hedging, by itself, can …

Purpose – What copulas are, their estimation, and use is illustrated using a geographical diversification example. To … matter. Originality/value –This research not only extends the current literature on geographical diversification by taking a …

Purpose – The purpose of this paper is to consider the impact on bank risk of portfolio diversification between … performance variables, this analysis compares the benefits of diversification across different bank types relative to margin … income and fee income. Further, regression analysis considers bank risk and revenue concentration. Findings – This paper …