to compensate for risk. Real ex-post returns averaged 7% annually across two centuries, including default episodes, major … and with the degree of credit risk in this market, as measured by historical default and recovery rates. Based on our …

We study the nature of systemic sovereign credit risk using CDS spreads for the U.S. Treasury, individual U.S. states … systemic risk. U.S. and Euro systemic shocks are highly correlated, but there is much less systemic risk among U.S. sovereigns … than among European sovereigns. We also find that U.S. and European systemic sovereign risk is strongly related to …

We examine the relation between executive compensation and market-implied default risk for listed insurance firms from … 1992-2007. Shareholders are expected to encourage managerial risk-sharing through equity-based incentive compensation. We … find that long-term incentives and other share-based plans do not affect the default risk faced by firms. However, the …

trade in which insurers trade off the benefits of repeat business against dealer competition. The model can quantitatively …