Publications

autumn 1976
Article

A Study of Interest Rate Spreads in the 1974 CD Market

By: D. B. Crane

Keywords: Markets; Interest Rates; Financial Services Industry

October 2020
Article

Corporate Legal Structure and Bank Loan Spread

By: Anywhere (Siko) Sikochi

This study examines how a corporate legal structure may affect borrowing costs. Corporate legal structure refers to the legal fragmentation of a firm into multiple, separately incorporated entities. This fragmentation is bound to be a factor when lenders determine the... View Details

Keywords: Corporate Legal Structure; Subsidiaries; Bank Loans; Minority Interest; Credit Risk; Organizational Structure; Business Subsidiaries; Financing and Loans

January 2011 (Revised June 2011)
Supplement

Fixed Income Arbitrage in a Financial Crisis (C): TED Spread and Swap Spread in November 2008

Investment manager Albert Mills confronts an apparent arbitrage opportunity during the global financial crisis of 2008 when he notices an unusually low-- and briefly negative-- thirty-year U.S. dollar fixed-floating swap spread. Mills must decide if there is an... View Details

Keywords: Bonds; Financial Management; Investment Return; Financial Crisis; Financial Services Industry; United States

May 2009
Article

Asymmetric Information Effects on Loan Spreads

By: Victoria Ivashina

The paper estimates the cost arising from information asymmetry between the lead bank and members of the lending syndicate. In a lending syndicate, the lead bank retains only a fraction of the loan but acts as the intermediary between the borrower and the syndicate... View Details

Keywords: Cost; Banks and Banking; Financing and Loans; Interest Rates; Capital; Investment Portfolio; Credit; Diversification; Risk and Uncertainty

SSRN

14 Jan 2014
News

Spreading the Seeds of Entrepreneurship

SCHULTZ Jack Schultz (MBA 1976), the oldest of eight children, grew up in the farming hamlet of Teutopolis, Illinois, population 1,100. It's fitting that his father was in the seed business (raising soybean and grass seed) because Schultz, like a latter-day Johnny... View Details

Keywords: CEO (Creating Entrepreneurial Opportunities); Educational Services; Agriculture; Manufacturing

15 May 2018
News

Spreading the Safety Net

team. Hyman writes that it will serve the best interests of its 1,200 employees, without whom Rent the Runway would not exist, but she also expects it to benefit the company itself—in the form higher retention rates, lower training costs,... View Details

April–May 2021
Article

The Influence of Loan Officers on Loan Contract Design and Performance

By: Robert Bushman, Janet Gao, Xiumin Martin and Joseph Pacelli

We investigate the extent to which loan officers generate independent, individual effects on the design and performance of syndicated loans. We construct a large database containing the identities of loan officers involved in structuring syndicated loan deals, allowing... View Details

Keywords: Loan Officers; Covenants; Interest Spreads; Syndicated Loans; Banks and Banking; Financing and Loans; Design; Performance

June 2018
Article

Deviations from Covered Interest Rate Parity

By: Wenxin Du, Alexander Tepper and Adrien Verdelhan

We find that deviations from the covered interest rate parity (CIP) condition imply large, persistent, and systematic arbitrage opportunities in one of the largest asset markets in the world. Contrary to the common view, these deviations for major currencies are not... View Details

Keywords: Interest Rates; Financial Markets; Banks and Banking; Price

January 2011
Supplement

Fixed Income Arbitrage in a Financial Crisis (D): TED Spread and Swap Spread in May 2009

The D case briefly recounts the action that investment manager Albert Mills takes in the matter of an unusually low U.S. dollar fixed-floating swap spread. He must decide what to do next. View Details

Keywords: Credit Derivatives and Swaps; Interest Rates; Financial Crisis

13 Jul 2021
Research & Ideas

Outrage Spreads Faster on Twitter: Evidence from 44 News Outlets

Negativity spreads faster than positivity online, and news organizations at both ends of the political spectrum are leveraging this tendency on Twitter, according to a new study. To test whether the broadcast news adage, “If it bleeds, it... View Details

Keywords: by Kristen Senz; Media & Broadcasting

January – March 2012
Article

Bond Risk, Bond Return Volatility, and the Term Structure of Interest Rates

By: Luis M. Viceira

This paper explores time variation in bond risk, as measured by the covariation of bond returns with stock returns and with consumption growth, and in the volatility of bond returns. A robust stylized fact in empirical finance is that the spread between the yield on... View Details

Keywords: Bonds; Volatility; Forecasting and Prediction; Interest Rates; Inflation and Deflation; Investment Return; Risk and Uncertainty; Currency Exchange Rate; Cash Flow; Stocks

2023
Working Paper

The Market for Sharing Interest Rate Risk: Quantities and Asset Prices

By: Ishita Sen, Umang Khetan, Jane Li and Ioana Neamtu

We study the extent of interest rate risk sharing across the financial system using granular positions and transactions data in interest rate swaps. We show that pension and insurance (PF&I) sector emerges as a natural counterparty to banks and corporations: overall,... View Details

Keywords: Interest Rates; Investment Funds; Banks and Banking; Insurance; Investment Banking; Risk and Uncertainty

SSRN

2022
Working Paper

Markups to Financial Intermediation in Foreign Exchange Markets

By: Jonathan Wallen

On average from 2013 to 2020, foreign asset managers in net sold forward 1.1 trillion U.S. dollars. This forward sale of dollars hedges the currency mismatch of foreign investment in U.S. dollar assets. By accommodating this demand, U.S. and European banks earn an... View Details

Keywords: Foreign Exchange; Financial Intermediation; Arbitrage; Market Power; Regulations; Currency; Assets; Interest Rates; Banking Industry

November 2022

Video clips might draw people to TikTok, but its algorithm keeps them watching. John Deighton and Leora Kornfeld explore why TikTok raced ahead of other platforms. First,... View Details

Research Summary

Contract Rights and Risk Aversion: Foreign Banks and the Mexican Economy, 1997-2004

In 1997 Mexicos banking laws were reformed, allowing foreign banks, for the first time since the nineteenth century, to purchase controlling interests in the countrys largest banks. Foreign banks controlled 16 percent of Mexican bank assets in March 1997. By June... View Details

16 Mar 2010
First Look

First Look: March 16

anti-trust immunity. Capitalism is not a natural system and it did not emerge or spread by an unguided process like biological evolution; it has only existed since the liberation of the markets for land, labor, and capital, i.e., the end... View Details

Keywords: Martha Lagace

February 2023 (Revised October 2023)
Case

Amazon and the Future of Organized Labor

By: Reshmaan Hussam, Trevor Fetter and Grace Liu

From their peak in the 1950s, private-sector labor unions in the United States declined rapidly in membership and influence, decade after decade. But growing inequality—especially visible during the COVID-19 pandemic—sparked new interest in labor and organizing.... View Details

Keywords: Working Conditions; Labor Unions

Educators

2002
Book

Organizations, Policy and the Natural Environment: Institutional and Strategic Perspectives

By: Andrew J. Hoffman and Marc Ventresca

This book brings together emerging perspectives from organization theory and management, environmental sociology, international regime studies, and the social studies of science and technology to provide a starting point for discipline-based studies of environmental... View Details

Keywords: Corporate Social Responsibility and Impact; Environmental Regulation

October 2008
Case

Financial Crisis in Asia: 1997-1998 (Abridged)

By: Huw Pill, Rafael M. Di Tella and Jonathan Schlefer

What caused the 1997-98 Asia Crisis: Asian nations' poor economic management, international financial contagion, close "crony" relations between local politicians and capitalists? This case examines how the crisis erupted in Thailand and spread in a chain of events... View Details

Keywords: Developing Countries and Economies; Financial Crisis; Ethics; Financial Institutions; Financial Management; Governing Rules, Regulations, and Reforms; Business and Government Relations; Asia

Educators