313 posts on "Financial Markets"
May 5, 2014
No Good Deals—No Bad Models
The recent financial crisis has highlighted the significance of unhedgable, illiquid positions in complex securities for individual financial institutions and for the global financial system as a whole.
Posted at 7:00 am in Financial Markets | Permalink
April 17, 2014
Liquidity Policies and Systemic Risk
One of the most innovative and potentially far-reaching consequences of regulatory reform since the financial crisis has been the development of liquidity regulations for the banking system.
Posted at 7:00 am in Financial Institutions, Financial Markets, Liquidity, Regulation, Systemic Risk | Permalink
April 15, 2014
On Fire‑Sale Externalities, TARP Was Close to Optimal
Imagine that many large and levered banks suffer heavy losses and must quickly sell assets to reduce their leverage. We expect the market price of the assets sold to decline, at least temporarily.
April 9, 2014
Lunch Anyone? Volatility on the Tokyo Stock Exchange around the Lunch Break on May 23, 2013, and Stock Market Circuit Breakers
Stock market circuit breakers halt trading activity on a single stock or an entire exchange if a sudden large price move occurs.
April 1, 2014
Mixing and Matching Collateral in Dealer Banks
The failure or near-collapse of some of the largest dealer banks on Wall Street in 2008 highlighted the profound complexity of the industry.
March 31, 2014
March 28, 2014
Evolution in Bank Complexity
In yesterday’s post, our colleagues discussed the historic changes in financial sector size.
March 27, 2014
The Growth of Murky Finance
Building upon previous posts in this series that discussed individual banks, we examine the historical growth of the entire financial sector, relative to the rest of the economy.
Posted at 7:00 am in Economic History, Financial Institutions, Financial Markets, Regulation | Permalink | Comments (3)
March 24, 2014
Convexity Event Risks in a Rising Interest Rate Environment
The rise in the ten-year Treasury rate last summer was perhaps the most dramatic since the 2003 bond market sell-off.
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