This paper analyses the optimal hedging decisions for risk-averse producers facing crop risk, assuming crop yield … derived. The individual crop risk is shown usually to contain a large systemic component. These new hedging instruments are …

Through the lens of market participants' objective to minimize counterparty risk, we investigate central clearing in … derivatives markets, and its interaction with systematic risk, portfolio directionality, and loss sharing. Previous studies … suggest that central clearing always reduces counterparty risk for a sufficiently large number of clearing members. We show …

Through the lens of market participants' objective to minimize counterparty risk, we provide an explanation for the … of the benefits and potential pitfalls with respect to a single market participant's counterparty risk exposure when … elements can render central clearing harmful for a market participant's counterparty risk exposure regardless of the number of …

Through the lens of market participants' objective to minimize counterparty risk, we provide an explanation for the … of the benefits and potential pitfalls with respect to a single market participant's counterparty risk exposure when … elements can render central clearing harmful for a market participant's counterparty risk exposure regardless of the number of …

non-banks are often specialised. 3) When using relative net exposures as a proxy for the "flow of risk" in the IRS market …, we find that risk absorption takes place in the core as well as the periphery of the network but in absolute terms the … risk absorption is largely at the core. 4) Among the Basel III capital and liquidity ratios, the leverage ratio plays a key …

non-banks are often specialised. 3) When using relative net exposures as a proxy for the "flow of risk" in the IRS market …, we find that risk absorption takes place in the core as well as the periphery of the network. 4) Among the Basel III …

This study investigates optimal production and hedging decisions for firms facing price risk that can be hedged with … vulnerable contracts, i.e., exposed to nonhedgeable endogenous counterparty credit risk. When vulnerable forward contracts are … the only hedging instruments available, the firm's optimal level of production is lower than without credit risk. Under …