Topic: Interest Rates
CD Withdrawal Penalties: Often More Than Worth the Risk
Banks know you won’t do the math: Even after a penalty for early withdrawal, the longer-term CD often nets out to a better deal
How Banking’s Bifurcated Deposit Approach Is Altering Lending — and Risk
Offering higher deposit rates lessens emphasis on loans of fixed rate and longer maturity
Local Banks Provide an Early Warning System on Recessions
When they’re forced to pay up for deposits, it’s a bad sign for area’s economy
Across 145 Years and 17 Countries, a Common Thread in Risky Credit Booms
Do investors misprice assets, revise their risk appetite or make some other misjudgment?
Forecasting a Recession Using Easy-to-Grasp Images
A look at the shape of five variables through the last seven downturns vs. today’s numbers
Fed Policy Helped Distressed Homeowners But Wasn’t a Cure-All
Modifications curtailed foreclosures during 2008-09 crisis, but borrowers remained at high risk of delinquency
The Collective Wisdom of Options Trades as Interest Rate Predictor
Skewness, measuring the range of biases, strongly suggests rate moves
How Commodity Price Swings Destabilize Bank Relationships
Small firms in Peru shop nationwide for cheap credit, but loyalty runs two ways
Quick Quiz — Easier than the GMAT
Test yourself on the Silicon Valley Syndrome, gender gap in math, minimum wage research and more
When the Fed Taps the Brakes, Not All Banks Slow Down
Some lenders’ balance sheets are less affected by a rising federal funds rate
The Relative Well-Being of Generations: An Explanation for Falling Interest Rates?
Doing worse than mom and dad is a drag on the entire economy
When Lenders Put a Muzzle on Borrowers
Companies hide from shareholders information about loans — more than likely to appease banks
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
A ‘Safer’ Treasury Bond
The government’s floating rate notes feature an added measure of security: higher interest earnings in times of rising rates
Are Interest Rates Really So Low?
Adjusting for inflation — and, crucially, for taxes — shows bond investors fare better than they might think