, economic uncertainty, and risk premia influence firms' financing and default policies. Countercyclical fluctuations in risk …. These comovements generate large credit risk premia for investment grade firms, which helps address the "credit spread …

This paper studies the long-run evolution of bank risk and its links to the macroeconomy. Using data for 17 advanced …

We develop a model of managerial compensation structure and asset risk choice. The model provides predictions about how …

Mutual fund risk-taking via active portfolio rebalancing varies both in the crosssection and over time. In this paper …, I show that the same is true for funds' off- balance sheet risk-taking, even after controlling for on-balance sheet … information. In the empirical application, I show that German equity funds have increased their risk-taking via synthetic leverage …

Mutual fund risk-taking via active portfolio rebalancing varies both in the cross-section and over time. In this paper …, I show that the same is true for funds' off- balance sheet risk-taking, even after controlling for on-balance sheet … information. In the empirical application, I show that German equity funds have increased their risk-taking via synthetic leverage …

exposure to macroeconomic risk, and that FD can increase macroeconomic vulnerability. To do this, we first establish three … an aggregate shock borne by a region is positively correlated with the level of FD present at the time of the shock …

conversion on the risk-taking behaviour of the issuing bank. We also test for regulatory arbitrage: do banks try to maintain risk … sample selection bias, we show that CoCo bonds issuance has a strong positive e↵ect on risk-taking behaviour, particularly … amplifies the impact of CoCo bonds on risk-taking. …

The “low risk anomaly” refers to the empirical pattern that apparently high-risk equities do not earn commensurately … high returns. In this paper, we consider the possibility that the risk anomaly represents mispricing, not a … misspecification of risk, and develop the implications for corporate capital structure. The risk anomaly generates a simple tradeoff …

-levering procedure is around for the case of risk-free debt. The procedure for risky debt is much less clear even under very simplifying …