assessments of default risk. We find that these frictions decrease the usefulness of equity-market variables for identifying … improves the accuracy of default-risk assessments in the presence of pessimistic-trading frictions, particularly where a …-trading frictions is a reduction in the accuracy of default-risk assessments based on publicly available sources of information. Using …

the risk surrounding a firm's fundamental value. We find that the spread in analysts' state-contingent valuations captures … fundamentals. Similarly, asymmetry embedded in the analysts' scenario-based valuations conveys information about asymmetric risk … in fundamentals. The results confirm that analysts' valuations reflect both state-contingent risk assessments and non …

Cyclicality in the losses of bank loans is important for bank risk management. Because loans have a different risk …