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Keywords:Risk 

Journal Article
Credit derivatives and risk management

The striking growth of credit derivatives suggests that market participants find them to be useful tools for risk management. This paper illustrates credit derivatives' value with three examples: a commercial bank using credit derivatives to manage loan portfolio risk; an investment bank using them to manage the risks of underwriting securities; and an investor, such as an insurance company, asset manager, or hedge fund, using them to align credit risk exposure with a desired credit risk profile. ; But credit derivatives pose risk-management challenges of their own; the author discusses five ...
Economic Review , Volume 92 , Issue Q4 , Pages 25-41

Journal Article
The capitalization and portfolio risk of insurance companies

The strategies of financial intermediaries in the United States presumed a stability of interest rates that began to break down in the late 1960s. Not only did rising interest rates during the past two decades tend to depress the value of the assets of all intermediaries, they also fostered competition among intermediaries as all sought new opportunities for profit. In order to cope, many financial institutions assumed new bets by "reaching" for riskier assets offering higher yields or by operating with less capital per dollar of assets. To varying degrees, many insurance companies have ...
New England Economic Review , Issue Jul , Pages 43-57

Journal Article
Risk-adjusted performance of mutual funds

Mutual funds are now the preferred way for individual investors and many institutions to participate in capital markets, and their popularity has increased demand for evaluations of fund performance. Many business publications now rank mutual funds according to their performance, and information services exist specifically for this purpose. There is no general agreement, however, about how best to measure and compare fund performance and on what information funds should disclose to investors. ; Risk and performance measurement is an active area for academic research and continues to be of ...
New England Economic Review , Issue Sep , Pages 33-48

Conference Paper
Market discipline in banking

Proceedings , Paper 328

Working Paper
Financial intermediaries, markets, and growth.

We build a model in which financial intermediaries provide insurance to households against a liquidity shock. Households can also invest directly on a financial market if they pay a cost. In equilibrium, the ability of intermediaries to share risk is constrained by the market. This can be beneficial because intermediaries invest less in the productive technology when they provide more risk-sharing. Our model predicts that bank-oriented economies should grow slower than more market-oriented economies, which is consistent with some recent empirical evidence. We show that the mix of ...
Working Papers , Paper 04-24

Working Paper
Deposit insurance, deposit deregulation and bank risk-taking

Research Working Paper , Paper 87-03

Journal Article
Opinion: Economics, uncertainty, and the environment

Why should a poorer population sacrifice some prosperity to aid wealther populations?
Econ Focus , Volume 16 , Issue 2Q/3Q , Pages 52

Journal Article
Derivative securities use grows as banks strive to hedge risks

Financial Update , Volume 12 , Issue Jan , Pages 8-9

Conference Paper
Assessing the risk of bank failure

Proceedings , Paper 250

Journal Article
Financial futures for banks

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