Interest Rate Risk - Publications - Faculty & Research

23 Nov 2015
Working Paper Summaries

Self Control and Commitment: Can Decreasing the Liquidity of a Savings Account Increase Deposits?

Keywords: by John Beshears, James J. Choi, David Laibson, Brigitte C. Madrian, Christopher Harris & Jung Sakong; Banking

October 2022 (Revised January 2025)
Case

Founders First Capital Partners: An Approach to Capital Access Equity

By: Brian Trelstad, Mel Martin and Amy Klopfenstein

In June 2021, Kim T. Folsom, the founder and CEO of revenue-based financing firm Founders First Capital Partners (FFCP), must decide whether to issue another loan to OnShore Technology Group, an up-and-coming software validation company. FFCP provided revenue-based... View Details

Keywords: Finance; Financial Instruments; Financing and Loans; Interest Rates; Investment Return; Revenue; Capital; Financial Services Industry; North and Central America; United States

Citation

Educators

Purchase

01 Dec 2005
News

Trillion-Dollar Fixer-Upper

well-heeled clients. Savings and loans, desperate for high returns, made risky loans a business staple. And the Japanese, buoyed by a strong economy and low interest rates at home, swept in to buy up trophy... View Details

Keywords: Roger Thompson; Real Estate

April 2024 (Revised August 2024)
Teaching Note

Silicon Valley Bank: Gone in 36 Hours

By: Jung Koo Kang, Krishna G. Palepu and Charles C.Y. Wang

Teaching Note for HBS Case No. 124-001. View Details

Keywords: Accounting Standards; Bank Runs; Financial Accounting; Financial Reporting; Social Media; Banks and Banking; Financing and Loans; Investment Portfolio; Interest Rates; Debt Securities; Risk and Uncertainty; Financial Statements; Risk Management; Financial Services Industry; United States

Citation

Purchase

09 Sep 2009
First Look

First Look: September 9

http://cb.hbsp.harvard.edu/cb/product/709495-PDF-ENG Wal-Mart's Use of Interest Rate Swaps Harvard Business School Case 108-038 "Wal-Mart's Use of Interest View Details

Keywords: Martha Lagace

01 Jun 2009
News

Too Big To Fail

the need to identify and regulate financial institutions that pose systemic risks at the top of its list of critical problems in need of legislative repair, along with limiting leverage and reforming the credit View Details

Keywords: Roger Thompson; federal bailouts; Credit Intermediation and Related Activities; Finance

01 Dec 2009
News

Hope for Reform Dims

requirements — the cushion against losses — for all financial institutions creating a mechanism to deal with those institutions regarded as too big to fail Thain characterized the crisis as a classic bubble “fundamentally fueled by monetary policy” that held View Details

Keywords: Securities, Commodities, and Other Financial Investments; Finance; Administration of Economic Programs; Government

11 Feb 2015
Research & Ideas

Politicians Benefited From Using Toxic Loans

only to see the rates skyrocket when the crisis hit. Many mayors cried foul, insisting that they had been hoodwinked. But were the local politicians really unwitting fools? “The question is, Did local politicians get fooled into engaging... View Details

Keywords: by Carmen Nobel; Financial Services

George J. Mecherle

Leaving the family farm in 1918 to tend to his ailing spouse, Mecherle joined an automobile insurance company and quickly discovered that farmers were charged the same auto insurance rates as non-farmers even though they were consistently... View Details

Keywords: Finance

April 2009
Teaching Note

First National Bank's Golden Opportunity (TN)

By: Shawn A. Cole

Teaching Note for [208072]. View Details

Keywords: Saving; Product; Interest Rates; Personal Finance; Cost vs Benefits; Risk and Uncertainty; Investment; Problems and Challenges; Demand and Consumers; Product Launch; Banks and Banking; Banking Industry; South Africa

Citation

Purchase

10 Nov 2008
What Do You Think?

How Much Can You Ask of Your Customers?

"volunteers" and "owners." It requires that marketers, as Blackshaw puts it, work in an "atmosphere of complete honesty," something sometimes difficult for them to do. These phenomena raise interesting... View Details

Keywords: by Jim Heskett

02 Sep 2014
Research & Ideas

Food Stamp Entrepreneurs: How Public Assistance Enables Business Bootstrapping

bootstrapped the funds to launch a vocational training program for dental assistants. Revenue from the new business pushed them out of poverty and into the middle class. Olds, a budding economist, was intrigued. “The rate of new business... View Details

Keywords: by Carmen Nobel; Health

July 1996 (Revised June 2001)
Case

Atlantic Corporation-Abridged

By: Thomas R. Piper

A major paper company is considering acquiring the assets of a company that is threatened by a hostile takeover. The acquisition can be evaluated in terms of industry attractiveness, comparative advantage, and cash-flow analysis. View Details

Keywords: Projects; Cash Flow; Interest Rates; Valuation; Mathematical Methods; Horizontal Integration; Acquisition; Competitive Advantage; Aerospace Industry

Citation

Educators

Purchase

22 May 2007
First Look

First Look: May 22, 2007

innovation, organizations' designs, and the nature of organizational adaptation. Download the paper: http://www.hbs.edu/research/pdf/07-087WP.pdf Bond Risk, Bond Return Volatility, and the Term Structure of Interest View Details

Keywords: Martha Lagace

01 Apr 2019
What Do You Think?

Does Our Bias Against Federal Deficits Need Rethinking?

reductions in government spending or increased taxes in an effort to reduce deficits may just exacerbate the problem. Conventional economic thinking maintains that fiscal responsibility keeps interest rates... View Details

Keywords: by James Heskett

04 Jun 2013
First Look

First Look: June 4

Barclays plc admitted that it had manipulated LIBOR-a benchmark interest rate that was fundamental to the operation of international financial markets and that was the basis for trillions of dollars of... View Details

Keywords: Sean Silverthorne

January 1994
Exercise

Walt Disney Company's Sleeping Beauty Bonds

By: Carliss Y. Baldwin

Walt Disney Co. issues a 100-year bond. This case describes the terms of the bond and immediate capital market reaction. View Details

Keywords: Capital Markets; Cash Flow; Debt Securities; Bonds; Interest Rates; Value

Citation

Purchase

13 May 2013
Blog Post

Exploring in a Passion Safe Environment

landscape and ecosystem, and develop an understanding of various corporate structures / lifestyle including business “vocabulary”. They’ve taught me that it’s not okay to tell my classmates to, Drop and give me 50! when they use the wrong View Details

25 Feb 2014
First Look

First Look: February 25

and $12 billion, which equates to between 1.3% and 8.7% of the stock of prepackaged software in private fixed investment in the United States and a very high rate of return to the original federal investment in the Internet. We argue that... View Details

Keywords: Sean Silverthorne

July 1983 (Revised July 1991)
Case

Hintz-Kessels-Kohl A.G.

By: Thomas R. Piper

A truck manufacturer must decide whether to bid on the sale of 120 trucks to a private firm in Costa Rica. If a bid is submitted, a decision must be made on whether to protect against the credit, exchange rate, and sovereign risks. View Details

Keywords: Risk Management; Currency Exchange Rate; Truck Transportation; Cross-Cultural and Cross-Border Issues; Manufacturing Industry; Auto Industry; Germany; Costa Rica

Citation

Educators

Purchase