New Policy Paper: In this ESRB ASC Insight, Bo Becker and I argue for the creation of an EU-wide opt-in insolvency framework that operates alongside national insolvency systems---a "28th regime" for insolvency

Working Papers:

Green Capital Requirements (with Marcus Opp, forthcoming in the Journal of Finance) [2021, last updated June 2025]

[working paper] [slides] [ESRB ASC Insight] [video of NBER presentation]

The Tragedy of Complexity (with Adam Zawadowski) [last updated October 2024]

[working paper]

Gradual Arbitrage [2009]

[working paper] [slides]

Publications:

A Theory of Socially Responsible Investment (with Marcus Opp), 2025, Review of Economic Studies 92(2), 1193-1225

Winner of the EFA 2020 Best Paper Prize in Responsible Finance

[working paper version][published version] [slides] [non-technical summary and video] [FTG Insights summary]

A Theory of Multiperiod Debt Structure (with Chong Huang and Hongda Zhong), 2019, Review of Financial Studies 32(11), 4447-4500

[working paper version] [published version] [slides]

Bank Resolution and the Structure of Global Banks (with Patrick Bolton), 2019, Review of Financial Studies 32(6), 2384-2421

[working paper version] [published version] [internet appendix] [slides] [Harvard Law School Forum Summary] [VoxEU]

The Anatomy of the CDS Market (with Adam Zawadowski), 2017, Review of Financial Studies 30(1), 80-119

[working paper version] [published version] [internet appendix] [slides]

Synthetic or Real? The Equilibrium Effects of Credit Default Swaps on Bond Markets (with Adam Zawadowski), 2015, Review of Financial Studies 28(12), 3303-3337

[working paper version] [published version] [internet appendix] [slides]

Should Derivatives Be Privileged in Bankruptcy? (with Patrick Bolton), 2015, Journal of Finance 70(6), 2353-2394

[working paper version] [published version] [internet appendix] [slides]

Maturity Rationing and Collective Short-Termism (with Konstantin Milbradt), 2015, Journal of Financial Economics 118(3), 553-570

[working paper version] [published version] [slides]

Predatory Short Selling (with Markus K. Brunnermeier), 2014, Review of Finance 18(6), 2153-2195

Winner of the 2015 Pagano-Zechner Award for the best non-investments paper published in the Review of Finance

[working paper version] [published version]

Liquidating Illiquid Collateral, 2014, Journal of Economic Theory 149, 183-210

[working paper version] [published version] [slides]

Strategic Conduct in Credit Derivative Markets (with Patrick Bolton), 2013, International Journal of Industrial Organization 31(5), 652-658

[working paper version] [published version]

Bubbles, Financial Crises, and Systemic Risk (with Markus K. Brunnermeier), 2013, Handbook of the Economics of Finance Volume 2, 1221-1288

[working paper version] [published version]

The Maturity Rat Race (with Markus K. Brunnermeier), 2013, Journal of Finance 68(2), 483-521

Winner of 2013 Brattle Group Distinguished Paper Award

[working paper version] [published version] [slides]

Credit Default Swaps and the Empty Creditor Problem (with Patrick Bolton), 2011, Review of Financial Studies 24(8), 2617-2655

Winner of the Goldman Sachs International Prize for the Best Conference Paper at the 2010 EFA

Summarized in CFA Digest 42(1), February 2012

[working paper version] [published version] [slides]

Non-technical papers:

Complexity in Financial Markets (with Markus K. Brunnermeier)

[working paper version]

Policy papers:

Bank Capital Regulation and Climate Change, 2022, ESRB ASC Insight No 3

Prevention and management of a large number of corporate insolvencies (co-chaired with Ralf Jacob), 2021

Preparing for the post-pandemic rise in corporate insolvencies (with Bo Becker), 2021, ESRB ASC Insight No 2