“rainmakers”) to take the excessive risk and employ the excessive leverage in the bubble that created the preconditions for the … properties that induce reckless risk-taking. Since boom-period bonuses do not have to be returned if rainmaker decisions …

downward sloping term structure of low-frequency variance risk premia in normal times. In periods of distress, the term …

investor base after stock splits. The results are supportive to the risk sharing hypothesis proposed by Peress (2010) who …

This paper presents a possible solution to financial crises by addressing the core of the problem of systemic risk. To … get there, it first illustrates a number of crises related situations before the definition of systemic risk is detailed …. It then explains challenges of systemic risk and solutions on an institutional level before the consequences for micro …

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 …

Climate change has been recently recognised as a new source of risk for the financial system. Several financial …) challenge traditional approaches to macroeconomic and financial risk analysis. Embedding climate change in macroeconomic and … supervisors about the integration of climate change considerations in financial risk assessment …

apply to the United Kingdom. We identify 29 indicators of financial stability risk, drawing from the literature on early …

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