Structured financing techniques in oil-and-gas-related project finance have grown more popular over the past several decades. Securitization, in particular, has played an important role in project finance by increasing oil and gas sponsors' access to affordable financing from the capital markets...

We present a novel empirical benchmark for analyzing credit risk using “pseudo firms” that purchase traded assets financed with equity and zero-coupon bonds. By no-arbitrage, pseudo bonds are equivalent to Treasuries minus put options on pseudo-firm assets. Empirically, like corporate...

Sweeping changes in financial regulation have occurred throughout much of the world following the global credit crisis that began in 2007. Shifts in the regulatory paradigm governing derivatives have been especially dramatic and have already altered the landscape for interest rate derivatives...

A quot;naked short salequot; is a short sale of stock in which the seller does not own the shares and essentially has no plans to acquire the stock by the settlement date. We review the standard economic arguments for and against the speculative short sale of equities and explain the strong...

We propose implied spreads (IS) and normalized implied spreads (NIS) as simple measures to characterize option prices. IS is the credit spread of an option’s implied bond, the portfolio long a risk-free bond and short a put option. NIS normalizes IS by the risk-neutral default probability and...

We propose implied spreads (IS) and normalized implied spreads (NIS) as simple measures to characterize option prices. IS is the credit spread of an option's implied bond, the portfolio long a risk-free bond and short a put option. NIS normalizes IS by the risk-neutral default probability and...

We present a novel empirical benchmark for analyzing credit risk using "pseudo firms" that purchase traded assets financed with equity and zero-coupon bonds. By no-arbitrage, pseudo bonds are equivalent to Treasuries minus put options on pseudo-firm assets. Empirically, like corporate spreads,...

The explosion of corporate risk management programs in the early 1990s was a hasty and ill-conceived reaction by U.S. corporations to the great "derivatives disasters" of that period. Anxious to avoid the fate of Barings and Procter & Gamble, most top executives were more concerned about crisis...

Finite risk reinsurance has become the subject of investigations, litigation, and possibly new regulation. This article provides an overview of finite risk solutions and products, describing their main features and their legitimate role in helping (mainly) industrial companies manage timing,...

In the last decade, three innovations in commercial loan-based securities and derivative have enabled institutional investors to access commercial loan markets "on leveraged terms": collateralized loan obligations (CLOs); loan-based total return swaps; and leveraged loan-based structured notes...