Insolvency Resolution and the Missing High Yield Bond Markets

In many countries, bankruptcy is associated with low recovery by creditors. We develop a model of corporate credit markets in such an environment. Corporate credit is provided by either a bond market or risk-averse banks. Restructuring of insolvent firms happens out of court if in-court bankruptcy

在诸多国家，破产往往伴随债权人回收率低下的问题。我们针对此类环境构建了企业信贷市场模型。企业信贷可通过债券市场或风险厌恶型银行两种渠道提供。若启动法庭内破产程序，困境企业的重组可在庭外完成。