Results 41 to 50 of about 5,454,495 (242)

Risk-Sharing or Risk-Taking? Counterparty Risk, Incentives and Margins [PDF]

SSRN Electronic Journal, 2010
ABSTRACTDerivatives activity, motivated by risk‐sharing, can breed risk‐taking. Bad news about the risk of an asset underlying a derivative increases protection sellers' expected liability and undermines their risk‐prevention incentives. This limits risk‐sharing, creates endogenous counterparty risk, and can lead to contagion from news about the hedged
Biais, Bruno, Heider, Florian, Hoerova, Marie   +2 more
openaire   +4 more sources

Beyond the Clouds: A Systemic Perspective on Risk——A Review of Counterparty Credit Risk Contagion in Financial Markets: Theory, Models, and Case Studies

Zhishi guanli luntan
[Purpose/Significance] Against the backdrop of increasingly interconnected global financial markets and the growing complexity of counterparty credit risk contagion mechanisms, this article aims to review the core content, theoretical contributions, and ...
Yang Xiaoguang
doaj   +1 more source

Financial stability consequences of strengthening the legal rights of secured creditors under the EU Preventive Restructuring Directive

International Insolvency Review, EarlyView.
Abstract A key goal of the Capital Markets Union (CMU) Action Plan is to establish a functioning bond market, offering businesses finance options beyond traditional bank loans and creating a stable source of financing for the real economy across the EU.
Maryam Malakotipour
wiley   +1 more source

Restructuring counterparty credit risk

, 2013
We introduce an innovative theoretical framework for the valuation and replication of derivative transactions between defaultable entities based on the principle of arbitrage freedom. Our framework extends the traditional formulations based on credit and
Oertel, Frank, Brigo, Damiano, Albanese, Claudio   +2 more
core   +1 more source

Counterparty Anti-Money Laundering Risk: A Three-Factor Matrix Model for Assessment and Control

Risks
This study develops and applies a three-factor matrix model for assessing counterparty risk within Anti-Money Laundering (AML) measures. The research problem arises from the need to transform qualitative features related to ownership, effective control ...
Kiril Luchkov, Nadya Velinova-Sokolova
doaj   +1 more source

Maximising the value of the insolvency estate in EU cross‐border cases: The interplay of insolvency practitioners in main and secondary insolvency proceedings

International Insolvency Review, EarlyView.
Abstract Modified universalism, as applied by the European Insolvency Regulation (EIR), allows not only for parallel main and secondary insolvency proceedings, but also for the creation of separate insolvency estates and the appointment of insolvency practitioners in each proceeding.
Remigijus Jokubauskas, J. M. G. J. (Gert‐Jan) Boon   +1 more
wiley   +1 more source

Counterparty Risk in Material Supply Contracts [PDF]

SSRN Electronic Journal, 2014
This paper explores the sources of counterparty risk in material supply relationships. Using long-term supply contracts collected from SEC filings, we test whether three sources of counterparty risk — financial exposure, product quality risk, and redeployability risk — are priced in the equity returns of linked firms.
Anna Costello, Nina Boyarchenko
openaire   +4 more sources

Counterparty Risk Subject To ATE [PDF]

Rating trigger ATE (Additional Termination Event) is a counterparty risk mitigant that allows banks to terminate and close out bilateral derivative contracts if the credit rating of the counterparty falls below the trigger level.
Zhou, Richard
core   +2 more sources

A New Default Probability Calculation Formula and Its Application under Uncertain Environments

Discrete Dynamics in Nature and Society, 2018
In the real world, corporate defaults will be affected by both external market shocks and counterparty risks. With this in mind, we propose a new default intensity model with counterparty risks based on both external shocks and the internal contagion ...
Liang Wu, Xian-bin Mei, Jian-guo Sun
doaj   +1 more source

How Does Reinsurance Create Value to an Insurer? A Cost-Benefit Analysis Incorporating Default Risk

Risks, 2016
Reinsurance is often empirically hailed as a value-adding risk management strategy which an insurer can utilize to achieve various business objectives.
Ambrose Lo
doaj   +1 more source