Stress testing credit risk: the Great Depression scenario

By employing Moody’s corporate default and rating transition data spanning the last 90 years we explore how much capital banks should hold against their corporate loan portfolios to withstand historical stress scenarios. Specifically, we will focus on the worst case scenario over the observation period, the Great Depression. We find that migration risk and the length of the investment horizon are critical factors when determining bank capital needs in a crisis. We show that capital may need to rise more than three times when the horizon is increased from 1 year, as required by current and future regulation, to 3 years. Increases are still important but of a lower magnitude when migration risk is introduced in the analysis. Further, we find that the new bank capital requirements under the so-called Basel 3 agreement would enable banks to absorb Great Depression-style losses. But, such losses would dent regulatory capital considerably and far beyond the capital buffers that have been proposed to ensure that banks survive crisis periods without government support.

NATO's security discourse after the Cold War: representing the West

This book provides a critical investigation into the discursive processes through which the North Atlantic Treaty Organisation (NATO)reproduced a geopolitical order after the end of the Cold War and the demise of its constitutive enemy, the Soviet Union.

'Between slavery and freedom': the expulsion and enslavement of free women of colour in the US South before the Civil War

For free black women in the pre-Civil War American South, the status offered by ‘freedom’ was uncertain and malleable. The conceptualization of bondage and freedom as two diametrically opposed conditions therefore fails to make sense of the complexities of life for these women. Instead, notions of enslavement and freedom are better framed as a spectrum. This article develops this idea by exploring two of the ways in which some black women negotiated their status before the law—namely though petitioning for residency or for enslavement. While these petitions are atypical numerically, and often offer tantalizingly scant evidence, when used in conjunction with evidence from the US census, it becomes clear that these women were highly pragmatic. Prioritizing their spousal and broader familial affective relationships above their legal status, they rejected the often theoretical distinction between slavery and liberation. As such, the petitions can be used to reach broader conclusions about the attitudes of women who have left little written testimony.

Western Containment Policies in the Cold War; The Yugoslav Case, 1948-1953

Containment, as conceived by the US government official George Kennan, was an aggressive attempt to cause the Soviet Cold War empire to disintegrate. This can is demonstrated by the case study of how the USA, Britain, and France tried to instrumentalise renegade Tito's Yugoslavia as a wedge to break up the cohesion of the Communist regimes within the Soviet sphere. They supported Tito against subversion and planned Soviet-orchestrated military attack from its neighbouring states; Western plans for the support of Yugoslavia included plans for a selective use of nuclear weapons.

‘Keystone in the Division of Europe: Germany in the Cold War’

Review essay on literature on the role of Germany in the Cold War

Did the RAI buy it? The role and limits of American broadcasting in Italy in the Cold War

With a 20 million dollar budget and 1,900 staff Voice of America broadcasted in 45 different languages and Italy was one of its main targets. By looking into what went on behind the microphone, this article addresses the extent to which cultural change was planned and structured transnationally, the interactions and interdependencies operating between Washington and Rome, and how a cooperation was achieved despite the fierce resistance of some of RAI’s executives. This allowed to air programmes produced in New York, and led to the launch of the most popular character of Italian radio and television: Mike Bongiorno.