Investing

[ad_1] A few months ago, the Gordon and Betty Moore Foundation and SRI-Connect approached my employer Liberum to write a report on how animal pandemics can affect the global food system and what kind of risks investors need to be aware of. One thing we should have learned from the […]

[ad_1] People dislike losses more than they like gains. Known as loss aversion, this phenomenon, or behavioral bias, serves as a cornerstone of Daniel Kahneman and Amos Tversky’s prospect theory. A forthcoming paper, which I co-authored with Didem Kurt, Koen Pauwels, and Shuba Srinivasan for the International Journal of Research […]

[ad_1] Statistically, there is an increased risk of failure with private equity ownership. PE portfolio companies are about 10 times as likely to go bankrupt as non-PE-owned companies. Granted, one out of five companies going bankrupt doesn’t portend certain failure, but it is a startling statistic. The rejoinder, of course, […]

[ad_1] Statistically, there is an increased risk of failure with private equity ownership. PE portfolio companies are about 10 times as likely to go bankrupt as non-PE-owned companies. Granted, one out of five companies going bankrupt doesn’t portend certain failure, but it is a startling statistic. The rejoinder, of course, […]

[ad_1] It’s often claimed that small-cap stocks are more interest-rate sensitive than their large-cap counterparts because of their reliance on outside financing. This seems plausible. But what do the data say? In this blog post, I explore the relationship between small- and large-cap stocks and interest-rate changes using the Stocks, […]

[ad_1] “We are probably in the second or third inning.” That’s Andrew Lo’s status report on the progress of artificial intelligence (AI), big data, and machine learning applications in finance. Lo, a professor of finance at the MIT Sloan School of Management, and Ajay Agrawal of the University of Toronto’s […]

[ad_1] The CBOE Volatility Index (VIX) came on the scene in the 1990s as a way for investors to track expected risk in the market going forward. The Chicago Board Options Exchange’s VIX does something unique in that it uses 30-day options on the S&P 500 Index to gage traders’ […]

[ad_1] “We’ve basically dug ourselves into a huge hole. And we’re hoping to fill the hole by printing a lot of money . . . We’re just taking what was the response in 2008 and putting it on steroids.” — Louis-Vincent Gave, CEO, Gavekal The resumption of business activity in […]

[ad_1] Financial regulations are becoming more far-reaching and restrictive. At the same time, employees are working from home and trading at higher volumes across more platforms than ever before. Yet compliance teams have limited budgets and staffing resources, and many are struggling to implement effective risk-mitigation measures across financial services firms […]

[ad_1] Is humanity at a stage of its development when interest on deposits will meet the same fate as the Walkman cassette player and be relegated to a quaint memory? “It is entirely possible,” Vineer Bhansali, writes in the introduction to The Incredible Upside-Down Fixed-Income Market, a newly published monograph […]