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In this paper we set forth a new perspective from which to understand and measure the brokerage of asymmetric … and profit, but also hide their opportunistic behavior from their counterparts. Next, the brokerage of asymmetric …
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We study the effects of a bank’s engagement in trading. Traditional banking is relationship-based: not scalable, long-term oriented, with high implicit capital, and low risk (thanks to the law of large numbers). Trading is transactions-based: scalable, short-term, capital constrained, and with...
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Recent events involving major insurance companies and insurance brokerage firms highlight substantial incentive …
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intermediary to impose redemption fees or gates in a crisis - a form of suspension of convertibility - can lead to preemptive runs … uncertainty is resolved before redeeming if redemption fees or gates cannot be imposed, but those same investors would redeem … preemptively if fees or gates are possible. Second, we show that for the intermediary, which maximizes the expected utility only of …
Persistent link: https://www.econbiz.de/10010393213