Topic: Debt

Illustration balance of risk and reward on a scale Research Brief / Stock Returns

The Strange Case of the Missing Stock Market Return

Investors in leveraged companies take on extra risk, but research indicates they see no offsetting return

Payday Loan office facade Research Brief / Debt

Sensitivity to Debt Type Predicts Financial Health

Research reveals that those wary of payday loans tend to manage their finances better

Home with an auction sign on the lawn Research Brief / Home Mortgages

Some Homeowners Pay Their Underwater Mortgages Until the Government Offers a Better Option

Federal loan modification program led borrowers to default

Illustration of a woman crossing a ravine on top of money Research Brief / Venture Capital

Lending to Startups: Not as Risky as You’d Think

Entrepreneurs borrow between equity funding rounds with a strong record of repaying debts

Suburban neighborhood under construction Research Brief / Real Estate

Quantitative Easing Kept the Foreclosure Crisis from Being Even Worse

The Fed’s gambit didn’t trigger a home-price recovery, but research shows it reduced subprime foreclosure risk

Illustration of eyes looking at a computer screen Research Brief / Taxes

Shaming of Tax Delinquents Works

34,334 letters were sent to test how sensitive those owing back taxes are to neighbors’ knowledge of the debts

Bar and line chart Research Brief / Corporate Finance

What Drives LBO Fever? More Than Just Cheap Loans

Private equity investors weigh the total cost of capital — not just debt, but equity as well — when pursuing buyouts

Monochrome photo of people standing in line for bread Research Brief / Banking

What Makes a True Financial Crisis?

Data back to 1870 show similarities in the worst banking system shocks — focusing on loose lending before a meltdown

TV News anchor Research Brief / Politics

Municipal Pension Crisis Made Worse by Democrats in Close Elections

Sixty years of data suggest retirement obligations rise after Democrats scrape into office

Illustration of a person pulling a line chart Research Brief / Consumer Lending

Credit Scores, Used to Predict Repayment, Can Restrain Economic Recovery

Rigid adherence to scoring systems can reduce consumer spending when it’s most needed

Illustration of a woman meditating Research Brief / Personal Finance

Good Information Alone Won’t Drive Financial Well-Being

A review of academic research finds the path to saving more and spending less often involves emotional prompts

People with luggage Research Brief / Economy

Modern Monetary Theory: Fiasco in Latin America, Option in U.S.?

The populist model, embraced by some on the American left, resembles policy that helped torpedo some smaller economies

Illustration of a tower taller than city buildings Research Brief / Corporate Finance

Forgoing a Tax Refund to Signal Brightening Financial Prospects

Companies that use loss carry-forwards to offset future tax liability, instead of claiming a refund, enjoy favorable lending terms

Illustration of vultures sitting on a sign in a city Research Brief / Debt

Less Leveraged Than the Competition: Ready to Snag Distressed Assets in a Recession

When bad times hit, highly indebted companies often have to sell operations and equipment at fire-sale prices

International flags and Euro sign Research Brief / Markets

One European Country Defaults: How Hard-Hit Is the Euro?

A predictive model employs credit default swaps across currencies

Woman paying bills with a computer Research Brief / Student Loans

Education Pays Off Handsomely, but Borrowing for It Makes People Unhappy

Student debt weighs on happiness more than mortgages or credit card loans