Johan Hombert, Bruno Biais , Pierre-Olivier Weill Mar 29,2021
Incentive problems make securities’ payoffs imperfectly pledgeable, limiting agents’ ability to issue liabilities. We analyze the equilibrium consequences of such... Read More
Ana Babus , Cecilia Parlatore Apr 30,20210
We study the determinants of asset market fragmentation in a model with strategic investors that disagree about the value of... Read More
Christian Opp Vincent Glode Apr 30,2021
We propose a model of strategic debt renegotiation in which businesses are sequentially interconnected through their liabilities. This financing structure,... Read More
Batchimeg Sambalaibat Jul 07,2021
We build a directed search model of network formation. We propose that a core-periphery interdealer network arises from dealer specialization. Read More
Batchimeg Sambalaibat Jul 07,2021
I build a search model of bond and credit default swap (CDS) markets with endogenous investor participation and show that... Read More
Qing Liu, Lucy White , Andrea Buffa Sep 15,2021
Most of the literature on organizational design and incentives assumes public contracting. Yet most real world compensation contracts are private... Read More
Basil Williams , Yaron Leitner Aug 29,2020
We study whether regulators should reveal the models they use to stress test banks. In our setting, revealing leads to... Read More
Ivan Marinovic , Martin Szydlowski Sep 22,2020
We study the disclosure policy of a regulator overseeing a monitor with reputation concerns, such as a bank or... Read More
Efstathios Avdis Oct 08,2020
Long-held intuition dictates that information-based trade is impossible without exogenous noise. Risk seekers can resolve this conundrum. Even though such... Read More
Thierry Foucault,Peter Hoffmann, Jean-Edouard Colliard Oct 08,2020
We propose a new model of trading in OTC markets. Dealers accumulate inventories by trading with end-investors and trade among... Read More