Debt Derisking

The authors thank Giulio Cornelli for excellent research support. The authors also thank Viral Acharya, Sirio Aramonte, Fernando Avalos, Matt Baron, Alexander Eisele, Wei Jiang, Ulf Lewrick, Kim Peijnenburg, Andrea Polo, Hyun Song Shin, and Kostas Tsatsaronis for useful comments. Part of this paper was written when Jannic Cutura was a visiting scholar at Columbia Business School. The views in this article are those of the authors and do not necessarily represent those of the European Central Bank or the Bank for International Settlements.