Publications

06 Apr 2021
Working Paper Summaries

Currency Hedging in Emerging Markets: Managing Cash Flow Exposure

Keywords: by Laura Alfaro, Mauricio Calani, and Liliana Varela; Financial Services

01 Jul 2015
Research & Ideas

A Bank That Takes Parmesan as Collateral: The Cheese Stands a Loan

that farmers have access to credit lines. However, it's understandable why lenders might hesitate to grant loans to the cheese producers. Trichakis explains that farms are essentially small- and medium-sized enterprises, helmed by farmers... View Details

Keywords: by Carmen Nobel; Banking; Food & Beverage

23 Jun 2008
Research & Ideas

Innovative Ways to Encourage Personal Savings

award prizes as part of the savings product's return. Rotating Savings and Credit Associations, known as ROSCAs, draw impetus from the spirit of communities and social networks. The varied solutions that Tufano and colleagues have set out... View Details

Keywords: by Martha Lagace; Financial Services

May 2005 (Revised December 2005)
Case

Nexgen: Structuring Collateralized Debt Obligations (CDOs)

A client asks Luc Giraud, CEO of the structured finance solutions provider Nexgen Financial Solutions, to put together a solution that allows the client to add AAA-rated bonds to its portfolio. The client cannot find suitably priced top-rated bonds in the market and... View Details

Keywords: Credit Derivatives and Swaps; Risk and Uncertainty; Debt Securities; Bonds; Financial Services Industry

08 Aug 2018
Sharpening Your Skills

Parmigiano-Reggiano, Jane Austen, and Other Things You Didn't Know About Finance

Sapphire Made Credit Cool for Millennials The Chase Sapphire Reserve card was one of the hottest product launches in 2016. But what would be JP Morgan's next act be? State Street’s SHE: Investing in Women Leaders Index funds are the major... View Details

Keywords: by Sean Silverthorne; Financial Services

12 Sep 2007
Op-Ed

Building Sandcastles: The Subprime Adventure

relied on mortgage brokers to find the loans. The brokers made money when borrowers signed on the bottom line—regardless of the long-term prospects of owners' solvency. If the borrower defaulted, the broker bore no responsibility. The View Details

Keywords: by Nicolas P. Retsinas; Banking; Construction; Real Estate

19 Mar 2006
Research & Ideas

Unlocking Your Investment Capital

and reversible way to reduce significantly the passive risk to the firm from this mismatch. I believe that the benefits of using credit derivative swaps will dwarf the costs of mistakes. Q: There has been a... View Details

Keywords: by Ann Cullen; Financial Services

02 Feb 2012
Op-Ed

Once a Castle, Home is Now a Debtors’ Prison

era before unemployment soared, the Dow plummeted, and credit default swaps surfaced. In today's jargon, these owners are underwater—they owe more than the value of their... View Details

Keywords: by Nicolas P. Retsinas; Financial Services; Construction; Real Estate

June 1995 (Revised May 1996)
Teaching Note

B.F. Goodrich-Rabobank Interest Rate Swap, The TN

By: Andre F. Perold and Wai Lee

Teaching Note for (9-284-080). View Details

Keywords: Credit Derivatives and Swaps; Rubber Industry

07 Jun 2016
First Look

June 7, 2016

closed question–based surveys. Publisher's link: https://www.hbs.edu/faculty/Pages/item.aspx?num=50727 June 2016 Journal of Finance Local Currency Sovereign Risk By: Du, Wenxin, and Jesse Schreger Abstract—We introduce a new measure of emerging market sovereign View Details

Keywords: Sean Silverthorne

August 1994
Background Note

Derivative Markets: Structure and Risks

Gives a conceptual understanding of derivative products, their applications, and valuation. After a brief treatment of exchange-traded derivatives, explores over-the-counter (OTC) derivatives, emphasizing the market, credit, legal, operational, and other risks... View Details

Keywords: Credit Derivatives and Swaps; Markets

13 Oct 2010
Research & Ideas

How Government can Discourage Private Sector Reliance on Short-Term Debt

suppose the government were to cut the maturity by half, to fifty-one days. To offset the change in duration, the Treasury would have to swap approximately $52 billion of ten-year bonds for twenty-year bonds. This represents only about... View Details

Keywords: by Staff; Financial Services

July 1998
Article

New Derivative and Hedging Accounting Standard

By: David F. Hawkins

Keywords: Credit Derivatives and Swaps; Accounting; Standards

Find at Harvard

04 Aug 2009
First Look

First Look: August 4

GM, it is burdened with large pension and other retiree liabilities that threaten to push it into bankruptcy. Bauer-Martin is considering using various credit derivatives (credit default swaps, credit-linked... View Details

Keywords: Martha Lagace

12 Jul 2016
First Look

July 12, 2016

model is defaultable bank liabilities that provide liquidity services to households. The quality of the liquidity services provided by bank liabilities depends on their safety in case of default. Commercial bank debt is fully insured and... View Details

Keywords: Sean Silverthorne

02 Feb 2010
First Look

First Look: Feb. 2

and Finance (forthcoming). (Also Harvard Business School Working Paper No. 05-053 and NBER Working Paper No. 13131.) Abstract The main arguments in favor of and against nominal and indexed debt are the incentive to default through... View Details

Keywords: Martha Lagace

02 Mar 2015
Research & Ideas

Retail Reaches a Tipping Point—Which Stores Will Survive?

they want, where they want for almost anything they desire. Associated with that, people are much more comfortable with ecommerce, giving their credit card numbers to Amazon and others, so the comfort and trust levels are much higher.... View Details

Keywords: by Sean Silverthorne; Retail

October 1994
Background Note

Note on Crude Oil and Crude Oil Derivatives Markets

By: Andre F. Perold, Wai Lee and Kuljot Singh

Briefly describes the crude oil markets and common derivatives contracts written on oil. The contracts are oil forward and futures contracts, and over-the-counter oil price swaps. View Details

Keywords: Non-Renewable Energy; Futures and Commodity Futures; Credit Derivatives and Swaps; Contracts; Energy Industry