Topic: Securities
Banks Rent Out Their Balance Sheets — So Derivatives Cost More
Even before Dodd-Frank rules, the costs were significant
When Financial Intermediaries Sneeze, These Assets Catch a Cold
Some investment vehicles are more reliant than others on the health of trading firms
Treasury Securities Are Actually Cheap Sometimes
They don’t trade at an absolute equal to intrinsic value, despite their image as the world’s investment bedrock
Borrowings Suggest Small Company Owners Face Higher Risk
Analysis uses business credit card loans to gauge market perception
A ‘Safer’ Treasury Bond
The government’s floating rate notes feature an added measure of security: higher interest earnings in times of rising rates
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
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