Can central counterparty (CCP) clearing control counterparty risk in the presence of risk taking that can aggravate … such risk? When counterparty risk is not observable, I show that central clearing leads to higher collateral requirements … for two different reasons. Without collusion about risk taking, a CCP offering diversification of risk cannot selectively …

The objective of this research is to examine the inter-bank network of clients as a channel for credit risk … transmission by groups of banks in Serbia characterized by different levels of credit risk (clusters). Two of the four observed …. The third group of banks (banks with high levels of credit risk) takes over the effects of systemic factors and transfers …

We examine the association between carbon risk and future stock price crash risk and the moderating role of climate … change disclosures in this association using a sample of firms across the world. We find that carbon risk is positively … associated with future stock price crash risk, and firm-level climate-change disclosures attenuate the positive effect of carbon …

What market features of Credit Defaults Swaps (CDS) exacerbate counterparty risk? To answer this, we formulate a model … the underlying asset and purchase CDS for risk management, while others buy these contracts purely for trading purposes …. We show that traders will choose to contract with less stable insurers, resulting in higher counterparty risk in this …