Category Archives: Market Risk

“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

Understanding the Russian Sanctions by Roy C. Smith and Ingo Walter

The latest tightening of the US and EU sanctions on Russian business and finance will provide an interesting lesson in international political, economic and military affairs. Here are some key issues to think about: These Financial Sanctions Can Be Very … Continue reading

Posted in Market Risk, NYU Stern, Regulatory Risk, Sovereign Risk, 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 Stijn Van Nieuwerburgh on the Cost of Renting vs. Buying

The following is an excerpt from The Wall Street Journal: Buying a home has long been part of the American dream. But rising prices have made renting less expensive in many places. People often aspire to own a home for … Continue reading

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

MSRM Class of 2013 Capstone Paper Published by INCAE Business Review

A Capstone paper by Alex Rubinstein, Kiran Dwarakanath, Claire Fox, Rose Kinuthia, Ted Rockwell, and Alex Solares of the MSRM Class of 2013 was published by INCAE Business Review. The article is a summary, prepared in Spanish, of the paper … Continue reading

Posted in Market Risk, MS in Risk Management Program | Tagged , , , | Leave a comment

Flash Boys May be Yesterday’s Story by Professor Roy Smith

The following is a recent paper written by NYU Stern Professor Roy Smith titled “Flash Boys May be Yesterday’s Story”: Michael Lewis’ newest Wall Street bestseller, Flash Boys, claims that equity markets are “rigged” by high frequency traders who invested millions … Continue reading

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

The Changing Face of Global Risk

The following is a Project Syndicate excerpt from an op-ed written by NYU Stern Professor Nouriel Roubini on Project Syndicate: The world’s economic, financial, and geopolitical risks are shifting. Some risks now have a lower probability – even if they … Continue reading

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

Professors Robert Engle & Viral Acharya Warn that European Stress Test Risk Measures are Flawed

On the release of the US Fed’s latest bank stress tests, NYU Stern School of Business Nobel Laureate Robert Engle and Professor of Finance Viral Acharya warn that European regulators’ stress tests miscalculate the amount of systemic risk banks will … Continue reading

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

Professor Viral Acharya’s Research on Stress-Testing European Banks is Cited

The following is an excerpt from the Financial Times entitled “Europe Should Say No to a Flawed Banking Union” by Wolfgang Münchau: There are two classes of compromise in political life. In the first, your ultimate aim is sweeping change, … Continue reading

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

Professor Viral Acharya on China’s Debt Fueled Growth Slowdown

 

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