The restructuring of a bankrupt company often entails the sale of such company. This paper suggests a way to sell the company that maximizes the creditors' proceeds. The key to this proposal is the option left to the creditors to retain a fraction of the shares of the company. Indeed, by...

The Markowitz and Usmen (MU) (2003) simulation study reported Michaud (1998) mean-variance (MV) portfolio optimization superior to Markowitz (1952, 1959) out-of-sample on average in each of thirty cases examined. However, a simplified replication of the MU test found thirty percent failures of...

We consider financial networks where agents are linked to each other with financial contracts. A centralized clearing mechanism collects the initial endowments, the liabilities and the division rules of the agents and determines the payments to be made. A division rule specifies how the assets...