. This paper aims to resolve a part of the opaqueness surrounding credit-risk allocation to tranches that represent claims of … different seniority on a reference portfolio. In particular, this paper analyzes the allocation of credit risk to different … risk in CDO transactions. We propose a metric for capturing the allocation of systematic risk to tranches. First, in …

; Matching ; Sectoral Productivity Shock …

What is the optimal policy response to a negative sectoral shock? How do frictions in goods and labor markets affect …