All Insights

Watch, read, or listen to all insights.
Filter by
Insights / Research BriefApr 20, 2023

Bank Fragility and Reclassification of Securities into HTM

João Granja
Banks with lower capital ratios, a higher share of run-prone uninsured depositors, and whose portfolios were more exposed to interest rate risk, were more likely to reclassify securities to held-to-maturity status in 2021 and 2022—just as the value of these securities were starting to decline—allowing banks to “hide” potential losses.
Topics:  Financial Markets
Insights / Research BriefApr 04, 2023

Tracing the International Transmission of a Crisis Through Multinational Firms

Marcus Biermann, Kilian Huber
Multinational firms transmit shocks across countries to their international affiliates through their internal capital markets; those affiliates support their parents through internal lending, become financially constrained themselves, and experience lower real growth.
Topics:  Financial Markets
Insights / Research BriefApr 03, 2023

Where Have All the “Creative Talents” Gone? Employment Dynamics of US Inventors

Ufuk Akcigit, Nathan Goldschlag
Inventors are increasingly concentrated in large incumbent firms, less likely to work for young firms, and less likely to become entrepreneurs; also, an inventor hired by an incumbent earns 12.6% more than an inventor hired by a young firm, but their innovative output declines by 6-11%.
Topics:  Financial Markets
Insights / Research BriefMar 30, 2023

Inflation and Asset Returns

Anna Cieslak, Carolin Pflueger
During a period of “bad” inflation, stock and bond prices fall together; during “good” inflation, stock prices rise while bonds fall. The former is owed to supply shocks and often persistent, while the latter is owed to demand shocks and typically transitory.
Topics:  Financial Markets
Insights / Research BriefMar 30, 2023

Sentiment, Productivity, and Economic Growth

George M. Constantinides, Maurizio Montone, Valerio Potì, Stella Spilioti
In countries with less efficient capital markets, increases in consumer sentiment lead to increased economic growth and total factor productivity, while in countries with more efficient capital markets, increases in sentiment increase economic activity only temporarily and without affecting productivity.
Topics:  Financial Markets
Insights / Research BriefMar 15, 2023

Access to Credit in Informal Economies: Does Financial Information Matter?

Rimmy E. Tomy, Regina Wittenberg-Moerman
Travelers to North Africa, the Middle East, India, the Balkans, and countries throughout Asia have likely encountered a bazaar, where sellers gather to form an often large, tightly grouped assortment of small shops and stalls that offer food, clothing, household wares, and other items for sale. For tourists, these shopping experiences, with their vibrant display of local products, offer a unique method of experiencing a local culture, while also allowing for the purchase of souvenirs.
Topics:  Financial Markets
Insights / Research BriefMar 08, 2023

A Survey of Private Debt Funds

Joern Block, Young Soo Jang, Steven N. Kaplan, Anna Schulze
Like water, financing tends toward the path of least resistance. Likewise, when regulations are erected to restrict or otherwise guide the flow of financing, money often finds its way through more amenable pathways. Case in point: When the Great Financial Crisis of 2007-09 triggered tightening banking regulation to buttress the financial system against future shocks, corporate lending looked to sources outside the banking sector.
Topics:  Financial Markets
Insights / Research BriefFeb 23, 2023

Bank Supervision and Managerial Control Systems: The Case of Minority Lending

Byeongchan An, Robert Bushman, Anya Kleymenova, Rimmy E. Tomy
Relative to white borrowers, mortgage lending to minority borrowers significantly increases following the resolution of enforcement decisions and orders (EDOs); this effect increases with the strictness of bank supervision and severity of the EDO.
Topics:  Financial Markets