“Safe assets” is a catch-all term for financial contracts that market participants treat as if they were risk ….S. economic output that year.To treat any contract as if it were risk-free seems delusional after apparently super-safe public and ….Precisely because there are no risk-free contracts, state intervention supplies the essential infrastructure to let people act as if …

changes in global risk (VIX). We find that inertia (whether the bond behaved as a safe asset in the past) and good …We study what makes government bonds a safe asset. Building on a sample of monthly changes in government bond yields in … on whether the change in global risk is driven by financial shocks rather than by US monetary policy …

will be nil. With heterogeneity in coefficients of relative risk aversion, safe assets can take the form of private bond …. However, in a Lucas-tree world, the aggregate risk is given by the process for GDP and cannot be altered by the creation of … issues from low-risk-aversion to high-risk-aversion agents. The model assumes Epstein-Zin/Weil preferences with common values …

take the form of private bond issues from low-risk-aversion agents to high-risk-aversion agents. I work out the quantity of … macroeconomic disasters. However, in a Lucas-tree world, the aggregate risk is given by the specified process for GDP and cannot be … quantity of safe assets will effectively be nil. With heterogeneity in coefficients of relative risk aversion, safe assets may …

will be nil. With heterogeneity in coefficients of relative risk aversion, safe assets can take the form of private bond …. However, in a Lucas-tree world, the aggregate risk is given by the process for GDP and cannot be altered by the creation of … issues from low-risk-aversion to high-risk-aversion agents. The model assumes Epstein-Zin/Weil preferences with common values …

will be nil. With heterogeneity in coefficients of relative risk aversion, safe assets can take the form of private bond …. However, in a Lucas-tree world, the aggregate risk is given by the process for GDP and cannot be altered by the creation of … issues from low-risk-aversion to high-risk-aversion agents. The model assumes Epstein-Zin/Weil preferences with common values …

, since retrading allows partial insurance of idiosyncratic risk in an incomplete markets setting. This lowers the issuers … idiosyncratic risk rises during recessions, so does the value of the service flows bestowing the safe asset with a negative ß. This …