Showing 1 - 10 of 18
Persistent link: https://www.econbiz.de/10014530710
Persistent link: https://www.econbiz.de/10001355219
Persistent link: https://www.econbiz.de/10000915010
Persistent link: https://www.econbiz.de/10003372620
Persistent link: https://www.econbiz.de/10011306476
Persistent link: https://www.econbiz.de/10001700356
Persistent link: https://www.econbiz.de/10001710110
We construct a theoretical framework to investigate the impact of liquidity risk, in the secondary corporate debt market, on corporate risk-taking preferences. Using closed-form solutions, our model shows that equity holders choose to adopt high-risk projects upon the arrival of illiquidity...
Persistent link: https://www.econbiz.de/10012929427
Persistent link: https://www.econbiz.de/10013424137
"Empirical tests of reduced form models of default attribute a large fraction of observed credit spreads to compensation for jump-to-default risk. However, these models preclude a "contagion-risk'' channel, where the aggregate corporate bond index reacts adversely to a credit event. In this...
Persistent link: https://www.econbiz.de/10003938437