Before revision: In this paper, we take up the analysis of a principal/agent model with moral hazard introduced in \mbox{%DIFAUXCMD pages , with optimal contracting between competitive investors and an impatient bank monitoring a pool of long-term loans subject to Markovian contagion.
After revision: In this paper, we take up the analysis of a principal/agent model with moral hazard introduced in 17 , with optimal contracting between competitive investors and an impatient bank monitoring a pool of long-term loans subject to Markovian contagion.