Purpose – The purpose of this paper is to investigate the relationship between liquidity and credit risk, and employ … the findings to estimate the Incremental Risk Charge (IRC), the new credit risk capital add‐on introduced by the Basel … findings show that, although the (incremental) credit risk in the trading book may be considerable, the capital needed to …

with real credit data showing that ignoring this modification of the two‐sample test can lead to the wrong statistical …

: reinsurance, industry loss warranties, catastrophe derivatives, and insurance‐linked securities. Finally, how the credit crisis … the credit crisis. Meanwhile, disparities between the relative costs and benefits of alternative sources of catastrophe …

. Findings – It is found that companies are more likely to minimize losses and maximize profits if they can obtain credit at a … positive profits. The corollary lesson is that credit is valuable, and having substantial credit obtainable at low rates is so …