Monthly Archives: June 2011

CDS Norms: A Significant Step Forward

Professor Viral Acharya on CDS regulation in India. The Reserve Bank of India (RBI) has recently released guidelines for trading in credit default swaps (CDS) on corporate bonds. Such “single-name” CDS contracts have become an important part of credit markets … Continue reading

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Will Money Funds Spread Greek Tragedy?

Professor Viral Acharya comments on how Greece’s economic problems will affect money market funds. The odds say no, thanks to official support for Greece and the European banks that look most apt to suffer in a default. Yet it’s clear … Continue reading

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Final Battle for the Euro Will be Fought on Italy’s Shores

Professor Edward Altman says overall credit risk metric places Italy among the riskiest private corporate sectors. For more than two years, we have witnessed the economic demise of certain European countries. This soon led to the financial community systematically assessing … Continue reading

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Event: “Mortgage Finance Reform through the Prism of Credit Risk Management”

This event features Professor Viral Acharya’s presentation on the housing finance reform. Motivated from economic theory, Viral argues that a sustainable mortgage finance system should be primarily private in nature; the credit risk underlying the mortgages should be born by … Continue reading

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Stocks Under $5 at Risk of Bankruptcy

The Z-Score, developed by Prof. Edward Altman as a tool for determining a company’s risk of bankruptcy, is featured. Small-cap stocks have enjoyed a tremendous rally since the March 2009 low, although the recent losing streak for equity markets has … Continue reading

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2011 100 Most Influential People in Finance

Professor Viral Acharya is named one of the 100 most influential people in finance. HEAVY HITTERS VIRAL ACHARYA, PROFESSOR OF FINANCE, NEW YORK UNIVERSITY’S STERN SCHOOL As central banks focus more on the financial sector’s stability, Acharya and a group … Continue reading

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Financial Crisis Inquiry Commission Interviews NYU Faculty

In the course of its research and investigation, the Financial Crisis Inquiry Commission interviewed more than 700 witnesses. Two of NYU faculty members were interviewed. Listen to Professor Viral Acharya’s interview. Listen to Professor Nouriel Roubini’s interview. Read Commission’s report.

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Operations in Financial Services–An Overview

Professor Michael Pinedo Over the past two decades, research in service operations has gained a significant amount of attention. Special issues of Production and Operations Management have focused on services in general (Apte et al. 2008), and various researchers have … Continue reading

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Italy will be eurozone’s biggest test, says Altman Z-score creator

Professor Edward Altman comments on Italy’s sovereign debt As Risk reports, Edward Altman, senior advisor to Classis Capital and creator of the Altman Z-scores used to predict corporate bankruptcies, made an interesting (sovereign) point on Friday. The future of the eurozone … Continue reading

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