fundamental difference in the cross-sectional predictability of asset and equity volatility. This difference lies in the leverage … effect component in equity volatility, and the interconnection between leverage and asset volatility …

activities. For this purpose, I propose a novel measure of synthetic leverage, which can be estimated based on publicly available … information. In the empirical application, I show that German equity funds have increased their risk-taking via synthetic leverage …

The moral hazard incentives of the bank safety net predict that distressed banks take on more risk and higher leverage … reduce their leverage and decrease observable measures of riskiness, which is inconsistent with the view that, on average …, moral hazard incentives dominate distressed bank leverage and risk-taking policies …

activities. For this purpose, I propose a novel measure of synthetic leverage, which can be estimated based on publicly available … information. In the empirical application, I show that German equity funds have increased their risk-taking via synthetic leverage …

What determines risk-bearing capacity and the amount of leverage in financial markets? Using unique archival data on … collateralized lending, we show that personal experience can affect individual risk-taking and aggregate leverage. When an investor … leverage in the Amsterdam stock market declined as a result. …

We assess the quantitative implications of the re-use of collateral on financial market leverage, volatility, and …-use frees up collateral that can be used to back more transactions. Re-use thus contributes to the build-up of leverage and … lead to excessive leverage and lower welfare. So the analysis in this paper provides a rationale for limiting, yet not …