OpenAlex · The Journal of Finance · 1996 · cites 2067
ABSTRACT This article examines the optimal capital structure of a firm that can choose both the amount and maturity of its debt. Bankruptcy is determined endogenously rather than by the imposition of a positive net worth condition or by a cash flow constraint. The results extend Leland's (1994a) closed‐form results to a much richer class of possible debt structures and permit study of the optimal maturity of debt as …
Hayne E. Leland, Klaus Bjerre Toft
OpenAlex · Brookings Papers on Economic Activity · 2017 · cites 107
We propose three core principles that should inform the design of bank capital regulation. First, whenever possible, multiple constraints on the minimum level of equity capital should be consolidated into a single constraint. This helps to avoid a distortionary situation where different constraints bind for different banks performing the same activity. Second, the best way to deal with the inevitable gaming of any se…
Robin Greenwood, Jeremy C. Stein, Samuel Hanson, Adi Sunderam
arXiv · arXiv · 2026
Automated Market Makers based on concentrated liquidity, such as Uniswap v3, significantly improve capital efficiency but expose Liquidity Providers (LPs) to adverse selection costs, formalized as Loss-Versus-Rebalancing (LVR). While theoretical literature quantifies these costs, the interplay between realistic blockchain microstructure and endogenous pricing mechanisms remains under-explored. This paper develops a g…
Daniele Maria Di Nosse, Fabrizio Lillo
OpenAlex · Speech · 2020 · cites 31
Remarks at Brookings-Chicago Booth Task Force on Financial Stability (TFFS) meeting, panel on market liquidity (delivered via videoconference).
Lorie Logan
arXiv · arXiv · 2026
In this paper, we develop an open-economy macroeconomic model of a Proof-of-Stake network to analyze nominal token-price dynamics and the systemic effects of speculative capital. We first consider a network populated solely by active utility users, who finance network activity through a steady exogenous inflow of fiat currency. We prove the existence of a unique, globally asymptotically stable steady-state equilibriu…
Mikhail Perepelitsa
OpenAlex · Munich Personal RePEc Archive (Ludwig Maximilian University of Munich) · 2011 · cites 234
The financial crisis and the ensuing recession have caused a sharp deterioration in public finances across advanced economies, raising investor concerns about sovereign risk. The concerns have so far mainly affected the euro area, where some countries have seen their credit ratings downgraded during 2009−11 and their funding costs rise sharply. Other countries have also been affected, but to a much lesser extent. Gre…
Fabio Panetta, Ricardo Correa, Michael Davies, Antonio Di Cesare, José-Manuel Marques
OpenAlex · Quantitative Finance · 2014 · cites 91
In this book, Andrew Ang seeks to provide common rules and guidance for investment decisions to ‘nations, through sovereign wealth funds, collective owners like pension funds, endowments, and found...
Robert M. Anderson