the bankruptcy code in Germany, that effectively removes their potential impact on CDS firms. Using a unique dataset on … capital constrained, and that are liquidity constrained recognise the empty creditor effect to a larger extent. Furthermore …, banks' business models affect the degree to which they recognise the empty creditor effect. Where banks that monitor their …

likelihood of future bankruptcy. …

the bankruptcy code in Germany that effectively removes their potential impact on CDS firms. Using a unique dataset on … constrained embed the empty creditor effect into their probability of default estimates of affected firms to a larger extent. So …