Topic: Risk Management
Looming Risk to Financial System: $1 Trillion in Commercial Loan Pools
Known as collateralized loan obligations, their aim is actually to reduce risk
Loan Pool Covenants, Meant to Contain Risk, Can Instead Spread It
Forced sale of assets could stretch illiquidity across industries
Inclusion in an ETF Can Improve the Pricing of Underlying Stocks
It can also help management make capital expenditure decisions
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
Has the Term ‘Competitive Advantage’ Outlived Its Usefulness?
Popular in business schools and executive suites, it’s no longer a meaningful way to compare companies
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
Corporate Bosses, Given Fewer Stock Options, Turn Risk-Averse
Research might give pause to corporate boards changing compensation models
CEO Succession: Execs Running a Subsidiary Offer a Balance Between Insider and Outsider
In an analysis of transitions from 1993 to 2017, they wrung more from operations facing tumult
Can Banks, Disrupted by Fintech, Adopt New Habits, Too?
In China, patent data shows commercial banks’ use of new technologies helps improve efficiency and reduce risk
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
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
Banks, Freed to Operate Across State Lines, Helped Stabilize the Economy
Lenders financed expansion in some markets, offsetting problems in others
Banks Transmit Financial Shocks, Including from Natural Disasters
How a localized flood may result in fewer loans to a far-off community
Amateurs Struggle To Incorporate Market Signals About Pricing into Their Trades
Disregarding data, novices often sail into strong winds
A Different Way to Evaluate Private Equity Performance
An approach tailored to investor risk appetite and more comparable to stocks