We examine how equity-market frictions that restrict pessimistic trading, such as short-sale constraints, affect assessments of default risk. We find that these frictions decrease the usefulness of equity-market variables for identifying defaulting firms but increase their usefulness for...

This article sketches, conceptually and empirically, the nature and magnitude of the economic gains associated with the impact of legal reform covering the financing of commercial aircraft and aircraft engines as contemplated by the proposed UNIDROIT Convention on International Interests in...

Derivatives exposures across large financial institutions often contribute to - if not necessarily create - systemic risk. Current reporting standards for derivatives exposures are nevertheless inadequate for assessing these systemic risk contributions. In this paper, I explain how a...