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Examples

  1. SPX-Based Pseudo Firm
  2. Commodity-Based Pseudo Firm
  3. Pseudo Financial Firms and Interest Rate Risk
  4. Bankruptcy Costs
  5. Junior and Senior Bonds

Methodology

  1. What are "pseudo firms"?
  2. Why is the balance sheet of a pseudo firm observable?
  3. Why are "pseudo firms" useful as experimental entities?
Bond Payoff