Topic: Investing
Looming Risk to Financial System: $1 Trillion in Commercial Loan Pools
Known as collateralized loan obligations, their aim is actually to reduce risk
A Simplified Tax Code and Post-Communist Growth
Study suggests flat tax systems boosted GDP in former Soviet republics and satellites
A Different Way to Evaluate Private Equity Performance
An approach tailored to investor risk appetite and more comparable to stocks
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?
Lack of Urgency Can Undermine a Popular Behavioral Nudge
Encouraging pre-commitment to a future behavior helps people do hard things — but it can backfire
How to Properly Incentivize Your Unicorn Finder
VCs and other investors need a contract with their seeker that blunts conflicts of interest
How a Stock Analyst’s Face Affects Their Earning Estimates
Trustworthy and dominant-seeming men: access to corporate management. Dominant-seeming women: not so much.
As Concentrated Shareholder Ownership Rises, Wages and Employment Suffer
Where big investors gather, corporate wealth is reallocated away from workers
When Individuals Concentrate in a Stock, Earnings Surprises Play Out Differently
Price movements can be more extreme
The Debt Market’s Indirect Antidote to ESG Greenwashing
Loans that include a sweetener or penalty tied to ESG performance seem to induce more honest reporting
How Much Debt Can the Government Roll Over Forever?
Public bonds compete against other investments; a model of that relationship
ESG Investors in China Focused on Profit Potential of Climate Change
Less attention to downside of nation’s carbon-neutral goals
What Limited Attention Does to Efficient Market Theory
Stocks don’t react to news immediately because, well, we’re human
Banks Transmit Financial Shocks, Including from Natural Disasters
How a localized flood may result in fewer loans to a far-off community
What Happens to Pesos When Dollars Go Digital?
As major central banks adopt digital currency, emerging countries will feel mixed effects
A Solution to the Debate over Momentum’s Cause?
Investors may underreact when information arrives in small, continuous bits