implicitly “commit” to subsidize or “bail out” their SPVs when the SPV would otherwise not honor its debt commitments, despite … investors know that SPV sponsors can bail out their SPVs if there is a need, in pricing the debt of the SPV investors will care …

Security baskets and index-lined securities are securities whose values are functions of the cash flows or values of … other assets. Creation of these "composite" securities would seem to be redundant since investors can cost1ess1y replicate … them. In this paper we study the existence and optimal design of composite securities. We first show that when some …

"Risk management" in securities markets refers to the oversight of portfolio managers and professional traders when …