Professor of Finance
Shohini Kundu’s research focuses on financial intermediation, regulation, corporate finance and macroeconomics. Kundu works on questions that aim to investigate the origins of financial fragility, as well as their direct and indirect effects on asset prices, corporate decisions and macroeconomy. Her recent work investigates how covenants, intrinsic to collateralized loan obligation (CLO) indentures, provide a mechanism through which idiosyncratic shocks may amplify to impose negative externalities on other, unrelated firms in CLO portfolios.
Forced sale of assets could stretch illiquidity across industries
Known as collateralized loan obligations, their aim is actually to reduce risk
How a localized flood may result in fewer loans to a far-off community
Lenders financed expansion in some markets, offsetting problems in others