255 posts on "Financial Institutions"
December 7, 2015
Dealer Positioning and Expected Returns
Tobias Adrian, Michael Fleming, and Erik Vogt Securities broker-dealers (dealers) trade securities on behalf of their customers and themselves. Recently, analysts have pointed to the decline in U.S. dealers’ corporate bond inventories as evidence that dealers’ market making capacity is impaired. However, historically such inventories also reflect dealers’ risk management and proprietary trading activities. In […]
Posted at 7:00 am in Financial Institutions, Financial Markets, Liquidity, Treasury | Permalink | Comments (2)
November 30, 2015
U.S. Banks’ Changing Footprint at Home and Abroad
Linda Goldberg and Rose Wang investigate changes in bank holding company (BHC) geography, especially the rising share of BHC affiliates in tax havens and financial secrecy jurisdictions.
October 15, 2015
Evaluating the Rescue of Fannie Mae and Freddie Mac
In September 2008, the U.S. government engineered a dramatic rescue of Fannie Mae and Freddie Mac, placing the two firms into conservatorship and committing billions of taxpayer dollars to stabilize their financial position.
October 14, 2015
Dealers’ Positions and the Auction Cycle
Michael J. Fleming and Collin Jones The aftermath of the financial crisis and changes in technology and regulation have spurred a spirited discussion of dealers’ evolving role in financial markets. One such role is to buy securities at auction and sell them off to investors over time. We assess this function using data on primary […]
October 8, 2015
Redemption Risk of Bond Mutual Funds and Dealer Positioning
Market participants have recently voiced concerns that bond markets seem to become illiquid precisely when they want to sell bonds.
October 7, 2015
Changes in the Returns to Market Making
Since the financial crisis, major U.S. banking institutions have increased their capital ratios in response to tighter capital requirements.
Posted at 7:00 am in Financial Institutions, Financial Markets, Regulation | Permalink | Comments (4)
October 5, 2015
Has U.S. Corporate Bond Market Liquidity Deteriorated?
Commentators have argued that market liquidity has deteriorated in recent years as regulatory changes have reduced banks’ ability and willingness to make markets.
Posted at 11:02 am in Financial Institutions, Financial Markets, Liquidity | Permalink | Comments (4)
September 30, 2015
Natural Experiment Sheds Light on the Market Effects of Herding
Pension funds are expected to behave in a patient, countercyclical manner, making the most of low valuations over the business cycle to achieve high returns.
September 28, 2015
Same Name, New Businesses: Evolution in the Bank Holding Company
When we think of banks, we typically have in mind our local bank branch that stores deposits and issues mortgages or business loans.
September 22, 2015
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