We formalize the idea that the financial sector can be a source of non-fundamental risk. Households' desire to hedge … against price volatility can generate price volatility in equilibrium, even absent fundamental risk. Fearing that asset prices … may fall, risk-averse households demand safe assets from leveraged intermediaries, whose issuance of safe assets exposes …

I examine the impact of financial sector stress on risk sharing in a novel setting: the CME's weather derivatives … financial sector stress, the risk premium on futures and implied volatility of options increase significantly. The effects are … greatest for high margin and high total risk contracts. Consistent with a decline in the supply of financial capital during …

firms. These effects are more pronounced for firms with high default risk and low liquidity and when the aggregate net worth …

prices at a single maturity for four underliers, AMZN, SPY, GOOG and JNJ. In all these cases it is observed that risk …

This paper develops and implements an equilibrium model of systemic risk. The model derives a systemic risk measure …

current approaches to assessing risk. This working paper explores how the financial sector understands the concept of …

An estimate is made of the specific risk to the fossil fuel sector from wind and solar generation and from electric … vehicles. The systemic risk to investment portfolios from climate change is then analysed …