Risky Financial Collateral, Firm Heterogeneity, and the Impact of Eligibility Requirements

Did Public Debt Assets Improve the Resilience of Money Market Funds during the COVID-19 Crisis?

Interest Rates, Credit Ratings, and Collateral as Determinants of Default: An Econometric Analysis of Micro and Small Enterprises in Brazil

This paper examines the determinants of credit default among Brazilian micro and small enterprises (MSEs), focusing on the effects of interest rates, credit ratings, and collateral requirements. Using a sample of approximately 1,500 working capital credit contracts from a Brazilian financial institution in 2019, we app...

A Study on the Determinants of Investment in Non-Performing Loans : Focusing on Individual Investor Satisfaction

According to the financial sector, the average delinquency rate for won-denominated loans at the five major banks stands at 0.46%, and indicators related to non-performing loans (NPLs) have also shown a worsening trend. While real estate transactions have contracted due to a tightening of liquidity caused by a prolonge...

Private Equity Allocation Decisions: Integrating Liquidity, Active Risk, and Investor Circumstances

Private equity can offer return-enhancement potential through liquidity risk premia and manager alpha, but these benefits come with meaningful liquidity and active risk that are not fully incorporated into certain portfolio construction frameworks. In addition, adjusting appraisal-based valuations reduces the apparent...

Interest Rate Risk, Bank Stability, and Valuation

This article surveys recent theoretical and empirical advancements on the impact of interest rates on bank valuations and stability—two crucial concerns for financial researchers, policy makers, and regulators. We begin by highlighting the distinctive feature of the regional banking crisis of 2023—the prevalence of liq...

Financial Restructuring in the Corporate Sector: Due Diligence Aspects

Company financial restructuring is becoming increasingly relevant as firms operate under the pressure of high corporate debt, costly refinancing, weaker access to capital and growing insolvency risks. In many cases, financial distress is not caused solely by excessive leverage; it reflects a deeper imbalance between li...