| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 966966 | Journal of Monetary Economics | 2012 | 16 Pages |
Abstract
⺠Collateral market illiquidity can explain counter-cyclical recovery rates. ⺠Counter-cyclical recovery rates vary negatively with default rates. ⺠Links between recovery rates and risk premia exacerbate financial shock effects. ⺠A collateral liquidity subsidy and liquidity buffers can shore up recovery rates.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Woon Gyu Choi, David Cook,