Topic: Risk Management
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
How Medical Device Makers Reacted to Publication of a Once-Secret Database of Millions of Adverse Events
New product filings to FDA included stronger safety features and larger technological advances
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
Inclusion in an ETF Can Improve the Pricing of Underlying Stocks
It can also help management make capital expenditure decisions
Loan Pool Covenants, Meant to Contain Risk, Can Instead Spread It
Forced sale of assets could stretch illiquidity across industries
Looming Risk to Financial System: $1 Trillion in Commercial Loan Pools
Known as collateralized loan obligations, their aim is actually to reduce risk
Market Bubbles Aren’t Entirely Irrational Exuberance
A model examines the relationships between innovation, speculation and market values
One Data Set That Warns Against Margin Trading
As a group, Chinese futures traders more likely to suffer margin call than to profit
One Way the Stock Market Sends Signals to Bond Traders
Thin stock trading, amid both price volatility and a period of potential economic change, leads bond investors to seek a higher yield
People Pay for the Right to Bid — and Then Overbid
Bidders sacrifice a better price to avoid ending up with nothing
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?
Rise of Nonbank Lenders Undermines Community Reinvestment Act Effectiveness
Traditional banks pull out of lower- and median-income neighborhoods the federal program aims to help
Round-Number Bids Are Costly, but Up the Odds of a Deal
Buyers of private firms signal willingness to move fast
Separating Auditing from Consulting: More Complex than it Seems
Market concentration, price and quality drive choice of firms
Sorting Out Conflicts of Interest in Commercial Loan Syndicates
Syndicate voting rules reflect varying levels of trust and familiarity
