Category Archives: Credit Risk

Real Effects of the Sovereign Debt Crisis in Europe: Evidence from Syndicated Loans By Professor Viral Acharya

This paper shows that the sovereign debt crisis and the resulting credit crunch in the periphery of the Eurozone lead to negative real effects for borrowing firms. Using a hand matched sample of loan information from Dealscan and accounting information … Continue reading

Posted in Credit Risk, NYU Stern, Sovereign Risk | Tagged , , , , | Leave a comment

“The End of Market Discipline? Investor Expectations of Implicit Government Guarantees” by Professor Viral Acharya

Professor Viral Acharya and his co-authors, Deniz Anginer of Virginia Tech and the World Bank and A. Joseph Warburton of Syracuse University, find that bondholders of major financial institutions have an expectation that the government will shield them from large … Continue reading

Posted in Credit Risk, Market Risk, NYU Stern, Systemic Risk | Tagged , , , | Leave a comment

Subsidizing Mortgage Debt Does More Harm Than Good by Prof. Stijn Van Nieuwerburgh

The following is an excerpt from an op-ed by Professor Stijn Van Nieuwerburgh on The New York Times: Housing policy in the United States strongly favors homeownership, and it does so by subsidizing mortgage debt. Programs like the mortgage interest … Continue reading

Posted in Credit Risk, Market Risk, Structured Finance | Tagged , , , | Leave a comment

Professor Ed Altman’s Research on Bond Defaults is Cited

The following is an excerpt from Forbes. If Energy Future Holdings files for bankruptcy, a buying opportunity may arise in the iShares iBoxx High Yield Corporate Bond ETF (HYG). This would be strictly a short-term trade, appropriate only for aggressive … Continue reading

Posted in Bankruptcy, Credit Risk, NYU Stern | Tagged , , , , | Leave a comment

Professor Viral Acharya’s Research on European Banks is Highlighted

The following is an excerpt from Bloomberg News: European banks have a capital shortfall of as much as 767 billion euros ($1 trillion) before the European Central Bank’s probe into the financial health of the region’s lenders, according to a … Continue reading

Posted in Credit Risk, NYU Stern, Sovereign Risk | Tagged , , , | Leave a comment

Falling Short of Expectations? Stress-Testing the European Banking System

The following is a study written by Professor Viral Acharya: The Single Supervisory Mechanism – a key pillar of the Eurozone banking union – will transfer supervision of Europe’s largest banks to the ECB. Before taking over this role, the … Continue reading

Posted in Credit Risk, NYU Stern, Sovereign Risk | Tagged , , , | Leave a comment

NYU Stern Profs. Cooley and Schoenholtz on a European Deflation Strategy

Professor Tom Cooley, former NYU Stern Dean, and Professor Kim Schoenholtz co-authored the op-ed below on CNBC titled “Europe needs a credible deflation strategy.” The great promise of the European common currency was that a single disciplined central bank could … Continue reading

Posted in Credit Risk, NYU Stern, Sovereign Risk | Tagged , , , , | Leave a comment

Financial Times Highlights Prof. Ingo Walter’s Research on Portfolios

The following is an excerpt from the Financial Times entitled “Rich make same investment errors as rest.” When investing, it often hurts to think of what might be possible if only you started with even more money. Those already wealthy … Continue reading

Posted in Credit Risk, Market Risk, NYU Stern | Tagged , , , , | Leave a comment

Professor Lawrence White Interviewed on Ratings Companies

The following is an excerpt from Bloomberg entitled “S&P Ratings States Reject Support New Jersey to California.” While suing Standard & Poor’s for fraud, states from New Jersey to California ironically are helping fund the world’s largest credit rater’s legal … Continue reading

Posted in Credit Risk, NYU Stern, Regulatory Risk | Tagged , , , | Leave a comment

Professor Nouriel Roubini on the rise of unconventional monetary policy

                                                    NEW YORK – As below-trend GDP growth and high unemployment continue to afflict most … Continue reading

Posted in Credit Risk, Market Risk, NYU Stern | Tagged , , | Leave a comment