In this study, the authors shed light upon the nature and degree of market risk inherent in CDS instruments, and consequently offer suggestions to the regulators with regard to the level of regulatory reserves that ought to be mandated to avert extreme disasters or meltdowns in the future. If...

In previous papers we have shown another interpretation of the irrationality of financial market agents. Another methodology has been proposed. But it also shown that others questions might be highlighted from both epistemological and social welfare point of view. This paper tries to go further...

A Catastrophe Theory Model modified for the explanation of the evolution/revolution of behavior in the securities market can be classified in the realm of behavioral finance. (See Thaler, 1993; Statman, 1998 and Pruden, 1989). An early model of the Cusp Catastrophe Model modified to explain...