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Cestau, Dario; Hollifield, Burton; Li, Dan; Schürhoff, … - 2018

The effective functioning of the municipal bond market is crucial for the provision of public services, as it is the largest capital market for state and municipal issuers. Prior research has documented tax, credit, liquidity, and segmentation effects in municipal bonds. Recent regulatory...

Persistent link: https://www.econbiz.de/10011938223

Central counterparties

Koeppl, Thorsten V.; Monnet, Cyril - 2008

Central counterparties (CCPs) have increasingly become a cornerstone of financial markets infrastructure. We present a model where trades are time-critical, liquidity is limited and there is limited enforcement of trades. We show a CCP novating trades implements efficient trading behaviour. It...

Persistent link: https://www.econbiz.de/10010303758

Clearing, Counterparty Risk and Aggregate Risk

Biais, Bruno - 2012

We study the optimal design of clearing systems. We analyze how counterparty risk should be allocated, whether traders … centralized clearing, as opposed to no or decentralized clearing, is the mutualization of risk. While mutualization fully insures … protection buyers exert effort to find robust counterparties, whose low default risk makes it possible for the clearing system to …

Persistent link: https://www.econbiz.de/10013100399