Charles-Cadogan, G. - 2017
minority bank (MB) policies. Our theory apparatus synthesizes Vasicek's bond pricing model, and KMV Moody loan portfolio model … bond prices, for minority (MB) and nonminority (NMB) peer banks, induce an anomalous concave risk return pricing structure …, MBs are better served by tactical portfolio allocation in an expanded investment opportunity set. We apply the theory to …