297 posts on "Financial Markets"
March 30, 2015
The Effects of Entering and Exiting a Credit Default Swap Index
Since their inception in 2002, credit default swap (CDS) indexes have gained tremendous popularity and become leading barometers of the credit market.
March 11, 2015
From the Vault: It’s CCAR Season
Ahead of the Federal Reserve’s release on Wednesday of 2015 bank stress tests results, we’ve seen a spike in traffic to a piece in our archive that offers a primer on the annual Comprehensive Capital Analysis and Review (CCAR) process and background on its role as a tool in the Fed’s bank supervisory arsenal.
Posted at 7:00 am in Financial Markets | Permalink
March 9, 2015
Herd Behavior in Financial Markets
Over the last twenty-five years, there has been a lot of interest in herd behavior in financial markets—that is, a trader’s decision to disregard his or her private information to follow the behavior of the crowd.
February 9, 2015
Counterparty Risk in Material Supply Contracts
Forming long-term partnerships with customers and suppliers often creates a competitive advantage for firms because it permits resource sharing, eases financial constraints, and encourages investment in relationship-specific capital.
December 22, 2014
Is There a Future for Credit Default Swap Futures?
Or Shachar Last year, IntercontinentalExchange (ICE) launched a credit default swap index futures contract. In the first two weeks there were spurts of interest in it, but soon it became evident that the new product was unable to generate sufficient demand. Given their short life span in the credit default swaps (CDS) market, the question […]
December 8, 2014
Global Asset Prices and the Taper Tantrum Revisited
Global asset market developments during the summer of 2013 have been attributed to changes in the outlook for U.S. monetary policy, starting with former Chairman Bernanke’s May 22 comments concerning future curtailing of the Federal Reserve’s asset purchase programs.
Posted at 7:00 am in Euro Area, Exchange Rates, Expectations, Financial Markets, International Economics, Monetary Policy | Permalink
December 5, 2014
Survey Measures of Expectations for the Policy Rate
Market prices provide timely information on policy expectations.
November 24, 2014
Bitcoin: How Likely Is a 51 Percent Attack?
Rod Garratt and Rosa Hayes In June 2014, the mining pool Ghash.IO briefly controlled more than half of all mining power in the Bitcoin network, awakening fears that it might attempt to manipulate the blockchain, the public record of all Bitcoin transactions. Alarming headlines splattered the blogosphere. But should members of the Bitcoin community be […]
October 20, 2014
Don’t Be Late! The Importance of Timely Settlement of Tri‑Party Repo Contracts
Tri-party repo is popular among securities dealers as a way to raise short-term funding.
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