Banking and Financial System – The Economics, Tech, Health and Culture Remix (beta)

Private Equity Indices Based on Secondary Market Transactions

November 12, 2018 Bilal 0

Private Equity Indices Based on Secondary Market Transactions https://ift.tt/2qvstRO Private Equity Indices Based on Secondary Market Transactions NBER Working Paper No. 25207 Issued in November 2018 NBER Program(s):Asset Pricing, Corporate Finance Measuring the performance of private equity investments (buyout and venture) has historically only been possible over long horizons because the IRR on a fund is only observable following the fund’s final distribution. We propose a new approach to evaluating performance using actual prices paid for limited partner shares of funds in secondary markets. We construct indices of buyout and venture capital performance using a proprietary database of secondary market […]

Systemic Banking Crises Revisited

September 19, 2018 Bilal 0

Systemic Banking Crises Revisited https://ift.tt/2CUk0Rr Systemic Banking Crises Revisited Author/Editor: Luc Laeven ; Fabian Valencia Publication Date: September 14, 2018 Electronic Access: Free Full Text. Use the free Adobe Acrobat Reader to view this PDF file Link to data for this title Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management. Summary: This paper updates the database on systemic banking […]

Finance and Econ From the Web: Night lights measure growth, why are rates so low, are bankers liberals or conservatives….

September 19, 2018 Bilal 0

I thought I’d have a separate “Best Of the Web” devoted to economics and finance. Below I’ve found 30 articles and academic papers on macro and finance. Some are easy reads and others are denser, but I’ve summarised each one. Oh, if you come across anything interesting that I’ve missed, then flag it to me and I’ll include it in my next list. Enjoy! North and South Korea at night , 1992 vs 2008

When Investor Incentives and Consumer Interests Diverge: Private Equity in Higher Education — by Charlie Eaton, Sabrina Howell, Constantine Yannelis

September 4, 2018 Bilal 0

When Investor Incentives and Consumer Interests Diverge: Private Equity in Higher Education — by Charlie Eaton, Sabrina Howell, Constantine Yannelis https://ift.tt/2LUyhg0 When Investor Incentives and Consumer Interests Diverge: Private Equity in Higher Education NBER Working Paper No. 24976 Issued in August 2018 NBER Program(s):Corporate Finance, Economics of Education, Labor Studies, Productivity, Innovation, and Entrepreneurship This paper uses private equity buyouts to study a transition from lower- to higher-powered profit-maximizing incentives in higher education, a sector heavily dependent on government subsidy. Private equity owners have especially high-powered incentives to maximize profits. In a subsidized industry, this could intensify focus on capturing […]

Financial Crisis: The Endgame

September 4, 2018 Bilal 0

Financial Crisis: The Endgame https://ift.tt/2PYwcmC “The only way we could have saved Lehman would have been by breaking the law.” Ben S. Bernanke, Testimony to the Financial Crisis Inquiry Commission, September 2, 2010 (cited by Reuters). “Lehman actually did have ample collateral for a loan that would have averted its sudden bankruptcy.” Laurence Ball, The Fed and Lehman Brothers, 2018, page xii. Ten years ago this month, the run on Lehman Brothers kicked off the third and final phase of the Great Financial Crisis (GFC) of 2007-2009. In two earlier posts (here and here), we describe the prior phases of […]

Trump’s Policies Will Displace the Dollar

September 4, 2018 Bilal 0

Trump’s Policies Will Displace the Dollar https://ift.tt/2NOhSLO The benefits that the US reaps from having the world’s main international currency are diminishing with the rise of the euro and renminbi. And now President Donald Trump’s misguided trade wars and anti-Iran sanctions will accelerate the move away from the dollar. NEW YORK – Back in 1965, Valéry Giscard d’Estaing, then France’s Minister of Finance, famously called the benefits that the United States reaped from the dollar’s role as the world’s main reserve currency an “exorbitant privilege.” The benefits are diminishing with the rise of the euro and China’s renminbi as competing […]

Climate change and finance: what role for central banks and financial regulators?

September 3, 2018 Bilal 0

Climate change and finance: what role for central banks and financial regulators? https://ift.tt/2PiV8nD Emanuele Campiglio, Yannis Dafermos, Pierre Monnin, Josh Ryan Collins, Guido Schotten and Misa Tanaka Climate change poses risks to the financial system. Yet our understanding of these risks is still limited. As we explain in a recent paper published in Nature Climate Change, central banks and financial regulators could contribute to the development of methodologies and modelling tools for assessing climate-related financial risks. If it becomes clear that these risks are substantial, central banks should consider taking them into account in their operations. Both central banks and financial […]

‘Lehman Weekend’: the biggest bankruptcy in American history

September 2, 2018 Bilal 0

‘Lehman Weekend’: the biggest bankruptcy in American history https://ift.tt/2LOMBXq Lehman Brothers’s bankruptcy was the biggest in American history It was “Lehman Weekend.” The moment in September 2008 when the 150-year-old investment bank Lehman Brothers collapsed, precipitating the worst global economic crisis since the 1930s. After failing to find buyers for the troubled financial giant, that was weighed down by risky debt holdings made up of at subprime mortgages, US authorities declined to offer a bailout and allowed the institution to fail. Monday, September 15, 2008, at 1:45 am, Lehman Brothers filed for bankruptcy, taking the world by surprise leaving well […]

Liquidity in Corporate Credit Markets

September 2, 2018 Bilal 0

Liquidity in Corporate Credit Markets https://ift.tt/2CasBPx This paper contains hypothetical analysis . Results shown may not be attained and should not be construed as the only possibilities that exist. The analysis reflected in this information is based upon data at time of analysis. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. Hypothetical and simulated examples have many inherent limitations and are generally prepared with the benefit of hindsight. There are frequently sharp differences between simulated results and […]

Germany’s Foreign Minister Just Proposed a Way to Skirt U.S. Sanctions

September 1, 2018 Bilal 0

Germany’s Foreign Minister Just Proposed a Way to Skirt U.S. Sanctions https://ift.tt/2wiLny2 If Maas’s remarks looked like the germ of an idea that would carve out a more independent European foreign policy, the message from the German Chancellery was: Not so fast. Steffen Seibert, Chancellor Angela Merkel’s spokesman, characterized Maas’s op-ed as his “personal article,” rather than as the government’s position. Still, he told reporters that Maas had also “presented observations that are preoccupying the government.” Merkel, speaking to reporters alongside the visiting Angolan president in Berlin, said Maas’s op-ed “expresses in other words what I have said, that the […]