Efficient investment and financial intermediation

Article Abstract:

Uninformed agents can make suboptimal investment as a result of insider trading. However, financial intermediation can mitigate this problem. The intermediary offers the uninformed agents the informationally less sensitive demand debt, thus extricating their payoffs from its investments. With the investment decisions left to the agent who is most capable of making them, more viable investments can be pursued by the intermediary and can achieve allocations better than those of the market.

Financial Services, Finance and Insurance, Analysis, Financial institutions, Insider trading in securities, Insider trading (Securities), Institutional investments

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Return predictability following large price changes and information releases

Article Abstract:

Research describing investment return behavior following price changes is presented. Particular attention is given to different criteria conditioning the returns, including news, volume, earnings and analyst recommendations. Models for returns predictability are presented.

Models, Return on investment, Rate of return

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Money and Credit in liquidity provision

Article Abstract:

A research theory is given to explain the observed empirical regularities on default probabilities, recovery rates, and credit spreads. The model generated can generate various shapes of yield spread curves and marginal default rate curves.

Asset & Risk Management, Research, Risk assessment

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