During recent years, an increasing number of corporations have decided to raise external capital via markets for hybrid …

extreme market-wide events and the supply of CBs on performance. Out-ofsample tests provide corroborative evidence on our … active in shorting stocks to hedge their exposure than smaller funds. They are also more vulnerable to supply shocks in the … market. However, the friction involved in adjusting the stock of risk capital managed by a large fund can negatively impact …