Forbearance, Subordinated Debt, and the Cost of Capital for Insured Depository Institutions
研究了FDIC宽容政策如何改变次级债务的预期收益率并削弱其市场纪律作用，对理解存款保险制度下的银行资本监管有参考价值。
Using an explicit model for subordinated debt that considers the possibility of FDIC forbearances, the authors show that forbearance 1) alters the required rate of return on subordinated debt while increasing its market value and 2) weakens the effectiveness of such debt as a source of market discipline.