The European low-carbon transition began in the last few decades and is accelerating to achieve net-zero emissions by 2050. This paper examines how climate-related transition indicators of a large European corporate firm relate to its CDS-implied credit risk across various time horizons....

This paper gives an overview of inflation-linked bonds (ILBs). In the first part, it describes the characteristics of inflation-linked bonds and their pricing mechanics. This is followed by an illustrative example which compares the cashflow structure of the two types of fixed income securities....

Financial instability and liquidity management by banks is often the most debated topic in the area of monetary economics. This study examines an emerging economy's banking system and contributes to the evolving body of literature on the topic of banks' borrowing behaviour during financial...

This paper aims to stress the importance of market liquidity for the stability of the financial system, emphasizing the pivotal role played by liquidity risk in the development of the current financial crisis, pointing out the flaws of regulation and supervision and stressing the need for their...

In Italy the adoption of convenants, and, more in detail, the use of bond covenants, is constrained by the predominance of SMEs, the significant role of relationship banking, the high costs related to public placements, the lack of investors‘ financial culture, the low amount of capital...

This paper studies the spread of losses and defaults in financial networks with two interrelated features: collateral requirements and alternative contract termination rules, which control access to collateral. When collateral is committed to a firm's counter-parties, a solvent firm may default...

Using comprehensive data on bank lending and establishment-level outcomes from 1997-2011, this paper fails to find evidence in favor of the hypothesis that the small business lending channel is an important determinant of small business or overall economic activity. The shift-share style...

This paper studies the spread of losses and defaults in financial networks with two important features: collateral requirements and alternative contract termination rules in bankruptcy. When collateral is committed to a firm's counterparties, a solvent firm may default if it lacks sufficient...

This note extends the CAPM to situations where a subset of investors is not mean-variance optimizers. We show that a CAPM relation holds when suitably adjusting beta to the presence of such investors. The adjusted CAPM can be used to reveal which non-mean-variance behavior is needed to explain...

The paper shows how the standard two-period CAPM with exogenous wealth and exogenous returns can be extended inter-temporally by including the evolution of wealth from the Evolutionary Finance model of Evstigneev, Hens and Schenk-Hoppe (2011). The missing link between the two models is given by...