Category Archives: Foreign Exchange Risk

Inflation Risk Premium Implied by Options

MSGF Academic Director and NYU Stern Professor Menachem Brenner along with his co-authors, Yoram Landskroner, Eddy Azoulay and Roy Stein of the Bank of Israel, explore how to measure expected inflation – a critical issue facing the Central Bank. One … Continue reading

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Ian Bremmer, President of Eurasia Group, Named NYU Global Research Professor

New York University has named Ian Bremmer – political scientist, expert on foreign policy and political risk, and president of Eurasia Group – as a Global Research Professor. In this role, Bremmer will teach at the NYU Stern School of … Continue reading

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The Wisdom of the Market

By Peter Blair Henry, Dean, Leonard N. Stern School of Business, Dean Richard R. West Professor of Business, and William R. Berkley Professor of Economics & Finance In an era of bubbles, crashes, tarnished reputations, and outrage over the gulf … Continue reading

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Dialogue from Davos: World Economic Forum Predicts a Slow Global Recovery

Top economists, politicians, and global leaders assemble in chilly Davos, Switzerland at 2013′s World Economic Forum(WEF) to discuss prospects for the global economy. NYU Stern Professor Michael Spence was noted in the Financial Times discussing some elements of WEF’s policy … Continue reading

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Professor Richard Levich’s Research Offers New Way to Evaluate Currency Traders

The research of Professor Richard Levich of NYU Stern and Momtchil Pojarliev of Hathersage Capital is highlighted in an article in Institutional Investor. Excerpt from Institutional Investor: Investment-style benchmarks – such as value investor, growth or quantitative – identify money management approaches in every … Continue reading

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Greece Should Default and Abandon the Euro

Greece is stuck in a vicious cycle of insolvency, low competitiveness and ever-deepening depression. Exacerbated by a draconian fiscal austerity, its public debt is heading towards 200 per cent of gross domestic product. To escape, Greece must now begin an … Continue reading

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Are forex derivatives different from a regulation perspective?

Professor Viral Acharya says it may not be entirely accurate to say that forex derivatives won’t ever cause systemic risk. In the coming weeks, the US treasury secretary Timothy Geithner will decide if foreign exchange derivatives should also be subject to increased regulations, … Continue reading

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Hedging Exchange Rate Risk: A Tempting Option

Professor Richard Levich’s paper on returns for managed currency funds is quoted. Slicing and dicing of risk was one of the ways the financial system got itself into trouble, but the principle is sound: some investors would like to pick … Continue reading

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NYU Stern’s Altman Sees High Yield Bond Correction (JNK, HYG), Plus Greek Contagion Risk (Spain and Portugal) Feeding Into Euro

Professor Edward Altman thinks a correction is near for high yield bonds. He also thinks it’s “even money” that Greece will default in 1.5 or 2 years and sees Greek contagion risk spilling into Spain, Portugal and other EU countries … Continue reading

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Euro Is in Fiscal No Man’s Land

The new agreement by European Union members to stand together with the International Monetary Fund in support of Greece’s effort to stave off fiscal calamity marks a turning point in a grand experiment that stood the relationship between politics and … Continue reading

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