Since the publication of the second edition of The Credit Risk of Complex Derivatives in 1997, the world of derivatives … * Regulatory initiatives and advances * Credit risk portfolio models Aimed at clients, intermediaries and regulators, this edition …

cash reserves or bank lines of credit. Banks create liquidity for firms by pooling their idiosyncratic risks. As a result …, firms with high aggregate risk find it costly to get credit lines from banks and opt for cash reserves in spite of higher … have a higher ratio of cash reserves to lines of credit, controlling for other determinants of liquidity policy. This …

to see how small firms manage their exposure to interest rate risk. Credit-constrained firms are found to match …