The authors thank David Sraer (department editor) and the review team for helpful comments and Kee-Hong Bae, Mascia Bedendo, François Derrien, Falko Fecht, Mariassunta Giannetti, Claudia Girardone, Giorgio Gobbi, Augustin Landier, Jérôme Lévy, William Mullins, Michael Schwert, René Stulz, and participants at various conferences for valuable discussions. The views expressed herein are those of the authors and should under no circumstances be interpreted as reflecting those of the Banque de France or the Eurosystem.