Exchanging collateral has emerged as the market standard for mitigating counterparty credit risk in the interbank derivatives market. Collateral postings do not, however, eliminate that risk completely. Most notably, the so-called gap risk remains, which is the risk that in the event of...

Argues (in 1893) that early economists viewed only three production factors as critical to economics – land, capital and labor. However, a fourth factor is also critical – enterprise, or risk-taking, which is typically rewarded with profit. This reward for risk represents a different form of...