In the previous post, João Santos showed that the largest banks benefit from a bigger discount in the bond market relative to the largest nonbank financial and nonfinancial issuers.
March 26, 2014
Evidence from the Bond Market on Banks’ “Too‑Big‑to‑Fail” Subsidy
Yesterday’s post presented evidence on a possible upside of very large banks, namely, lower costs.
March 25, 2014
Do Big Banks Have Lower Operating Costs?
Despite recent financial reforms, there is still widespread concern that large banking firms remain “too big to fail.”
Introducing a Series on Large and Complex Banks
The chorus of criticism levied against mega-banks has, in some cases, outrun the research needed to back the criticism.
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.
March 10, 2014
Has Automated Trading Promoted Efficiency in the FX Spot Market?
The relative merits of algorithmic and high-frequency trading are most often discussed in the context of equity markets.
Just Released: Beyond the Unemployment Rate: Eight Different Faces of the Labor Market
This morning, the New York Fed released a new set of charts measuring various dimensions of the labor market.
March 7, 2014
Crisis Chronicles: The Credit and Commercial Crisis of 1772
During the decade prior to 1772, Britain made the most of an expansion in colonial lands that required significant capital investment across the East and West Indies and North America.
March 5, 2014
Just Released: Harsh Winter Weather Hampers Economic Activity in the Region
The New York Fed’s latest Beige Book report indicates that harsh winter weather hampered economic activity in the region in early 2014.
Posted at 2:05 pm in Regional Analysis | Permalink
Risk Aversion, Global Asset Prices, and Fed Tightening Signals
The global sell-off last May of emerging market equities and currencies of countries with high interest rates (“carry-trade” currencies) has been attributed to changes in the outlook for U.S. monetary policy, since the sell-off took place immediately following Chairman Bernanke’s May 22 comments concerning the future of the Fed’s asset purchase programs.
Posted at 7:00 am in Euro Area, Exchange Rates, Fed Funds, Financial Markets, International Economics, Monetary Policy | Permalink | Comments (2)
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