The relationship between the physical and pricing measure in credit markets KU Leuven
During the financial and sovereign crisis, governments protected the financial system from a collapse. The transfer of impaired assets to a bad bank, or a guarantee on these assets, is one of the state aid measures applied by governments to preserve financial stability. The transfer price or guaranteed value is crucial in the assessment of state aid. The real challenge is thus to determine the state-aid-compatible value of impaired assets, ...