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Jun
Rollover Risk And Credit Risk. This paper models a firms rollover risk generated by conflict of interest between debt and equity holders. AU - Xiong Wei. Evidence from the MENA region Borsa Istanbul Review 17 4 238 2017. When the firm faces losses in rolling over its maturing debt its equity holders are willing to absorb the losses only if the option value of keeping the.
AU - Xiong Wei. When the firm faces losses in rolling over its maturing debt its equity holders are willing to absorb the losses only if the option value of keeping the firm alive justifies the cost of paying off the maturing debt. Crossref Ameni Ghenimi Hasna Chaibi and Mohamed Ali Brahim Omri The effects of liquidity risk and credit risk on bank stability. When the firm faces losses in rolling over its maturing debt its equity holders are willing to absorb the losses only if the option value of keeping the firm. When the firm faces losses in rolling over its maturing debt its equity holders are willing to absorb. If interest rates rise adversely then firms must refinance their debt at a higher rate and incur more losses interest charges in the future.
Crossref Ameni Ghenimi Hasna Chaibi and Mohamed Ali Brahim Omri The effects of liquidity risk and credit risk on bank stability.
When the rm faces rollover losses in rolling over its maturing. Evidence from the MENA region Borsa Istanbul Review 17 4 238 2017. The latter effect originates from firms debt rollover. Rollover risk refers to the risk faced by firms when their debt is about to mature and must be rolled over into new debt. Rollover risk reflects economic conditions eg. N2 - Our model shows that deterioration in debt market liquidity leads to an increase in not only the liquidity premium of corporate bonds but also credit risk.