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Can banks trade credit default swaps (CDSs) referenced on their current corporate clients at competitive prices, or are …
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jump back up to around 200 basis points. We surmise that in a booming credit market the certification of corporate …
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Decomposing lending fees into predicted (fair) and residual (premium or discount) fees reveals overpricing among a third of hard-to-borrow stocks: those for which borrowers pay a premium. Despite paying the highest fees, they are the only profitable shorters. Their net annualized profits of 5%...
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sensitivity tests and provide suggestive evidence of a close connection between the credit loan and stock markets. …
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