Topic: Risk Management

A cityscape at sunset overlaid with a grid of lighted network Research Brief / Banking

Banks Transmit Financial Shocks, Including from Natural Disasters

How a localized flood may result in fewer loans to a far-off community

Illustration of a bridge made out of gears with a red connecting section in the middle Research Brief / Banking

Banks, Freed to Operate Across State Lines, Helped Stabilize the Economy

Lenders financed expansion in some markets, offsetting problems in others

Computer model of chromosomes unwinding Feature / Health Care

BRCA Mutation: New Model Quantifies How Surgeries Reduce Cancer Risk

Informed by personal experience, a researcher parses data to help those mulling mastectomy and gynecological surgeries

FDIC logo on a window Research Brief / Banking

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

Illustration of a man skiing Research Brief / Compensation

Corporate Bosses, Given Fewer Stock Options, Turn Risk-Averse

Research might give pause to corporate boards changing compensation models

Fed Chair Jerome Powell stands at a podium and answers questions from the press Feature / Economics

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

New York Met Life building Research Brief / Investing

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

Illustration of a character wearing a hat covering their ears Research Brief / Investing

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

A bubble refracts light and the image of a window Research Brief / Markets

Market Bubbles Aren’t Entirely Irrational Exuberance

A model examines the relationships between innovation, speculation and market values

Computer screen with stock trading software Research Brief / Trading

One Data Set That Warns Against Margin Trading

As a group, Chinese futures traders more likely to suffer margin call than to profit

Illustration of people riding a rollercoaster Research Brief / 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?

Two blue cartoon characters unravel a scribble knot black thread Research Brief / Markets

Separating Auditing from Consulting: More Complex than it Seems

Market concentration, price and quality drive choice of firms

The old Continental Illinois building in Chicago Research Brief / Finance

Sorting Out Conflicts of Interest in Commercial Loan Syndicates

Syndicate voting rules reflect varying levels of trust and familiarity

A view of a petrochemical plant at night Research Brief / Competition

Sunk Costs Work as Barrier to Exit

Firms endure losses in hopes of a turnaround

A castle with a moat Research Brief / Investing

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

Monochrome photo of Wall Street Research Brief / Investing

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