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Journal Article
Index amortizing rate swaps
As short-term interest rates have declined over the past several years, investors have increasingly sought higher yielding investment vehicles. The index amortizing rate (IAR) swap is one of several new instruments that have been developed in response to this investor demand for yield enhancement. This article explains the structure and pricing of IAR swaps, some of the risks associated with the product, and the uses and growth prospects of the market.
Journal Article
Another view of the underpricing of initial public offerings
How should high average initial returns on new public offerings of common stocks be interpreted? The usual view is that such offerings are intentionally underpriced. This study draws on previously neglected information about return distributions and market practice to advance a different explanation for the high average returns.
Journal Article
Government securities investments of commercial banks
Government securities holdings at U.S. commercial banks have risen rapidly since 1990. The author contrasts the recent rise with increases observed during and after earlier recessions and evaluates possible explanations for the buildup. In addition, he presents a rough estimate of the interest exposure created solely by the securities acquisitions and compares it with estimates for earlier periods when commercial banks also added U.S. securities to their portfolios at a fast rate.
Journal Article
Credit veils and credit realities
Journal Article
A primer on Federal Reserve float
Journal Article
Recent U.S. export performance in the developing world
U.S. exports to developing countries have grown remarkably in recent years, far outpacing our sales increases to the industrial world. The author seeks explanations for this strong performance in the traditional determinants of export growthrelative prices and income growthand in other factors linking world economic conditions to developing country demand for U.S. goods.
Journal Article
The bank credit \"crumble.\"
The role played by cutbacks in commercial loan supply in the U.S. economic downturn in 1990 remains controversial. This article investigates the importance of the credit "crumble" and bank capital shortfalls in the contraction of the commercial loan supply in 1990. The author explores the link between the strength of bank balance sheets and the recent slowdown in commercial and industrial loans to U.S. companies.