When a bank experiences an adverse shock to its equity capital, one way to return to target leverage is to…

We study the nature of systemic sovereign credit risk using CDS spreads for the U.S. Treasury, individual U.S. states, and…

Crisis experience has shown that as the financial intermediation chain lengthens, it becomes complicated to assess the risks of financial…

We develop a measure of systemic importance that accounts for the extent to which a bank propagates shocks across the…

We propose a novel mechanism to facilitate understanding of systemic risk in financial markets. The literature on systemic risk has…

We develop a model where financial institutions swap projects in order to diversify their individual risk. This can lead to…

The global imbalance explanation of the financial crisis of 2007-09 argues that the demand for riskless assets from countries with…

Systemic risk is commonly used to describe the possibility of a series of correlated defaults among financial institutions---typically banks---that occur…