Topic: Investing
Rethinking Buy-and-Hold Investing
The case for using rising market volatility as a signal to pare back on stocks — does higher risk always mean higher return?
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
Behind the Annuity Conundrum: The Belief They’re Unfair
Researchers find little commonality among haters of the difficult-to-sell retirement products, except when discussing fairness
Momentum Investing: It Works, But Why?
After a quarter century of sprawling study, it’s time to narrow the focus and settle on an explanation
How ETFs Muffle Stock Market Feedback to Managers
The rise of passive investing leaves companies mistrusting market signals on how best to deploy capital
Ignorance — About One’s Investments, Anyway — Isn’t Always Bliss
Valentin Haddad’s research looks at the phenomenon of “information aversion,” when individual investors stop tracking their portfolios for fear of bad news
How Life Insurers Insulate the Markets from Turmoil
Valentin Haddad’s research finds that insurers’ patient investing shields risky assets — and those who hold them — from steeper declines
To Wall Street, There’s No Crisis Like a Banking Crisis
Tyler Muir finds that neither war nor deep recession darkens investor sentiment like sudden turmoil in the financial system
The Moat That Keeps Complex Asset Strategies Profitable
Andrea Eisfeldt finds that hedge funds with infrastructure to execute sophisticated arbitrage crowd out less-expert investors
How an Excess of Stock Analyst Optimism Lands on Companies Least Deserving of It
Results of financially weak firms are difficult to forecast; in uncertainty, Wall Street’s views are overly generous
Chinese Investors Learn about Derivatives the Hard Way
An analysis of warrant trading reveals individuals’ poor grasp of complex securities
Do Fair Disclosure Rules Lead to More or Less Information?
Managers, forced to inform a broader audience, choose not to gather information even for themselves
Lending to Startups: Not as Risky as You’d Think
Entrepreneurs borrow between equity funding rounds with a strong record of repaying debts
Calculating a Value for the Government Support Banks Enjoy
Researchers’ model could quantify the risks in the growing movement to ease up on Dodd-Frank regulations
Single-Family Rentals: What Drives Investor Return?
A unique data set provides fresh insights for the growing institutional investor market
Financial Constraints on Intermediaries Cause Asset Mispricing
Real-world bond data reveals how the capital positions and liquidity of middlemen affect prices of securities they broker