between US corporate bonds and stocks of the corresponding issuing firms, accounting for their characteristics. I document … empirical evidence suggests that markets are more integrated for larger firms, with more liquid corporate bonds and stocks …

Uncertainty is part of life as the quote of Benjamin Franklin clearly states. A distinction should be made between … uncertainty and risk. Uncertainty includes all facts in life that do not have a certain outcome and cannot be measured. Risk1 is … the measurable counterpart of uncertainty (Knight (2002)). This thesis is focused on risk, and more specifically on credit …