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
Felix Feng Nov 03,20200
This paper studies the implication of persistent private information on a firm’s optimal financing and investment policies. In a dynamic... 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