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
Christian Opp , Vincent Glode Sep 28,2020
We develop a tractable model of strategic debt renegotiation in which businesses are sequentially interconnected through their liabilities. This financing... 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
Gabrielle Demange, Jean-Edouard Colliard Oct 08,2020
In over-the-counter markets for assets such as bonds or securitizations, large volumes can be split into smaller pieces and gradually... Read More
Denis Gromb , Jean-Edouard Colliard Oct 08,2020
How do resolution frameworks affect the private restructuring of distressed banks? We model a distressed bank's shareholders and creditors negotiating... Read More
Stefan Nagel,Zhaogang Song, Zhiguo He Nov 07,2020
In sharp contrast to most previous crisis episodes, the Treasury market experienced severe stress and illiquidity during the COVID-19 crisis,... Read More
Jing Huang,Jidong Zhou, Zhiguo He Nov 24,2020
Open banking facilitates data sharing consented by customers who generate the data, with a regulatory goal of promoting competition between... Read More
Peter DeMarzo , Zhiguo He Nov 24,2020
We characterize equilibrium leverage dynamics in a tradeoff model when the firm can continuously adjust leverage and cannot commit to... Read More