bank credit becomes relatively more expensive, reflecting the scarcity of bank equity. More generally, the model is …

Productive firms can access credit markets directly by issuing corporate bonds or by borrowing through financial … intermediaries. In this paper, we study the cyclical properties of corporate credit provision through these two types of debt … instruments in major advanced economies. We argue that the cyclicality of corporate credit is closely related to the cyclicality …

"Empirical tests of reduced form models of default attribute a large fraction of observed credit spreads to … bond index reacts adversely to a credit event. In this paper, we propose a tractable model for pricing corporate bonds … in response to large credit events. Model calibrations suggest that while contagion risk premia may be sizable, jump …