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Discussion Paper
Leader-Follower Dynamics in Shareholder Activism
Activist shareholders play a central role in modern corporations, influencing the capital structure, business strategy, and governance of firms. Such “blockholders” range from investors who actively jawbone or break up firms to index funds that are largely passive in that they limit themselves to voting. In between, however, is a key group of blockholders that have historically focused on trading but have embraced activism as an established business strategy in the past few decades. Campaigns involving such “trading” blockholders have become ubiquitous, increasingly targeting ...
Speech
Foreign Exchange Market Structure: The Land of a Thousand Lakes
Remarks at FX Market Structure Conference, Federal Reserve Bank of New York, New York City.
Speech
Market structure and liquidity in the U.S. Treasury and agency mortgage-backed security (MBS) markets: Mortgage Bankers Association National Secondary Market Conference and Expo, New York City, May 2016
Remarks at the Mortgage Bankers Association National Secondary Market Conference and Expo, New York City.
Speech
The FX Global Code: Progress Made and The Path Ahead
Remarks at FX Markets USA, New York City.
Discussion Paper
How Liquid Is the Inflation Swap Market?
Inflation swaps are used to transfer inflation risk and make inferences about the future course of inflation. Despite the importance of this market to inflation hedgers, inflation speculators, and policymakers, there is little evidence on its liquidity. Based on an analysis of new and detailed data in this post we show that the market appears reasonably liquid and transparent despite low trading activity, likely reflecting the high liquidity of related markets for inflation risk. In a previous post, we examined similar issues for the broader interest rate derivatives market.
Working Paper
The Life Insurance Industry and Systemic Risk: A Bond Market Perspective
The 2008 financial crisis brought a focus on the potential for a large insurance firm to contribute to systemic risk. Among the concerns raised was that a negative shock to insurers could lead to a ?fire sale? of corporate bonds, a market where insurers are among the largest participants. This paper discusses the existing evidence on life insurance firms and systemic risk, with a focus on the investment grade corporate bond market. We provide some tentative evidence that life insurers tend to absorb liquidity risk by purchasing bonds when the bonds are less liquid than average. However, we do ...
Speech
Remarks at the Next Step FX Event
Remarks at the Next Step FX Event, New York City.