Liquidity Hoarding

Banks hold liquid and illiquid assets. An illiquid bank that receives a liquidity shock sells assets to liquid banks in exchange for cash. We...

DP 682

Complicated Firms

We exploit a novel setting in which the same piece of information affects two sets of firms: one set of firms requires straightforward processing to...

DP 683

Short Run Bond Risk Premia

In the short-run, bond risk premia exhibit pronounced spikes around major economic and financial crises. In contrast, long-term bond risk premia...

DP 686

Defeasance of Control Rights

We analyze one frequent clause in bonds, covenant defeasance. Covenant defeasance allows the issuer to remove the bond’s covenants by placing the...

DP 679

Bank Bailout Menus

Bailing out banks requires overcoming debt overhang as well as dealing with adverse selection with respect to the quality of banks’ balance sheets, in...

DP 676