Topic: Risk Management
Loan Pool Covenants, Meant to Contain Risk, Can Instead Spread It
Forced sale of assets could stretch illiquidity across industries
Amateurs Struggle To Incorporate Market Signals About Pricing into Their Trades
Disregarding data, novices often sail into strong winds
Muni Bond Buyers Pay a Little Extra for the Pleasure of Not Being Taxed
Doing so, they subsidize government, which is, well, sort of like a tax
Why We Think Differently About Money Than About Probabilities
Learning gradually versus all at once and how we estimate value
Unearthing the Negative Consequences of Managing to Quarterly Earnings
A 2017 study on workplace injuries spurs more research on perils of corporate short-termism
Looming Risk to Financial System: $1 Trillion in Commercial Loan Pools
Known as collateralized loan obligations, their aim is actually to reduce risk
Round-Number Bids Are Costly, but Up the Odds of a Deal
Buyers of private firms signal willingness to move fast
A Different Way to Evaluate Private Equity Performance
An approach tailored to investor risk appetite and more comparable to stocks
When Individuals Concentrate in a Stock, Earnings Surprises Play Out Differently
Price movements can be more extreme
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
Banks Transmit Financial Shocks, Including from Natural Disasters
How a localized flood may result in fewer loans to a far-off community
Sorting Out Conflicts of Interest in Commercial Loan Syndicates
Syndicate voting rules reflect varying levels of trust and familiarity
Banks, Freed to Operate Across State Lines, Helped Stabilize the Economy
Lenders financed expansion in some markets, offsetting problems in others
One Data Set That Warns Against Margin Trading
As a group, Chinese futures traders more likely to suffer margin call than to profit