This is a course in the Master of Science program covering topics related to credit risk, uncertainty, investors’ reactions to changes in credit risk and the firm’s capital structure. The course proposes an empirical approach based on papers from top journals in Finance. The goal of this course is to provide the students with a structure for thinking about state-of-the-art models and show them how to employ set models in an empirical framework. The students are expected to use econometric software to replicate sections of the chosen papers.
Prerequisites: Yes (See syllabus)