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
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
arXiv · arXiv · 2026
Persistent shifts in term-structure dynamics undermine the stability of single-regime models in long samples. We develop an arbitrage-free regime-switching generalized CIR (RS-GCIR) model that jointly prices the Chinese government bond (CGB) curve and corporate bond curves. To capture the systematic transmission from interest-rate conditions to credit spreads, we structure the model into two blocks and price corporat…
Maochun Xu, Yunqi Liang, Yi Hong
arXiv · arXiv · 2019
Systemic liquidity risk, defined by the IMF as "the risk of simultaneous liquidity difficulties at multiple financial institutions", is a key topic in macroprudential policy and financial stress analysis. Specialized models to simulate funding liquidity risk and contagion are available but they require not only banks' bilateral exposures data but also balance sheet data with sufficient granularity, which are hardly a…
V. Macchiati, G. Brandi, G. Cimini, G. Caldarelli, D. Paolotti
arXiv · arXiv · 2026
We provide a large-scale empirical audit of DEX routing using 2.98 million WETH-USDC swaps on Ethereum. Comparing realized routes with optimized benchmarks, we measure an average shortfall of 2.02 bps per trade or \$24 million. To attribute losses, we introduce three reproducible optimal benchmarks: a Support-Constrained Optimum (SCO) that evaluates split quality conditional on the pools actually used; a Full-Venue O…
Weiye Xi, Ciamac C. Moallemi
arXiv · arXiv · 2026
We present a large-scale experimental study of quantum-computing-based molecular simulation carried out on IQM's Sirius 24-qubit superconducting processor, utilizing up to 16 operational qubits. The work employs Sample-based Quantum Diagonalization (SQD) together with the Local Unitary Cluster Jastrow (LUCJ) ansatz to estimate ground-state energies for a set of benchmark molecules, including H$_2$, LiH, BeH$_2$, H$_2…
Anurag K. S. V., Ashish Kumar Patra, Manas Mukherjee, Alok Shukla, Sai Shankar P.
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
arXiv · arXiv · 2026
Scaling generative inverse and forward rendering to real-world scenarios is bottlenecked by the limited realism and temporal coherence of existing synthetic datasets. To bridge this persistent domain gap, we introduce a large-scale, dynamic dataset curated from visually complex AAA games. Using a novel dual-screen stitched capture method, we extracted 4M continuous frames (720p/30 FPS) of synchronized RGB and five G-…
Zheng-Hui Huang, Zhixiang Wang, Jiaming Tan, Ruihan Yu, Yidan Zhang
arXiv · arXiv · 2026
Recent multimodal large language models have achieved strong performance in unified text and image understanding and generation, yet extending such native capability to 3D remains challenging due to limited data. Compared to abundant 2D imagery, high-quality 3D assets are scarce, making 3D synthesis under-constrained. Existing methods often rely on indirect pipelines that edit in 2D and lift results into 3D via optim…
Chongjie Ye, Cheng Cao, Chuanyu Pan, Yiming Hao, Yihao Zhi
arXiv · arXiv · 2026
Estimating the covariance of asset returns, i.e., the risk model, is a key component of financial portfolio construction and evaluation. Most risk modeling approaches produce a factor model that decomposes the asset variability into two components: the first attributed to a small number of factors that are common among the assets and the second attributed to the idiosyncratic behavior of each asset. Third-party provi…
Alexandros E. Tzikas, Emmanuel J. Candès, Trevor Hastie, Stephen P. Boyd, Mykel J. Kochenderfer