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Articles 1081 - 1110 of 4183

Full-Text Articles in Finance

Lessons Learned: Ron Bloom, Mary Anne Chute Lynch Apr 2022

Lessons Learned: Ron Bloom, Mary Anne Chute Lynch

Journal of Financial Crises

Ron Bloom served as senior adviser to Secretary of the Treasury Timothy Geithner on President Barack Obama’s Task Force on the Automotive Industry and as assistant to the president for manufacturing policy (2009–2011). As senior adviser on the Auto Task Force team, Bloom helped lead the restructuring of General Motors and Chrysler LLC. Subsequently, he advised the Obama administration with policy development and strategic planning to revitalize the manufacturing sector. Bloom brought to Treasury his unique experience working with organized labor (including the United Steelworkers Union, United Auto Workers, the Teamsters, the Air Line Pilots Association), and in the investment …

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Lessons Learned: Eric Kolchinsky, Steven H. Kasoff, Matthew A. Lieber Apr 2022

Lessons Learned: Eric Kolchinsky, Steven H. Kasoff, Matthew A. Lieber

Journal of Financial Crises

Eric Kolchinsky served as managing director of ratings for ABS CDOs (asset-backed security collateralized debt obligations) at Moody’s Investor Services from 2005 to 2007. Kolchinsky started his career in structured finance with stints at Goldman Sachs and Merrill Lynch. He joined Moody’s in 2000 as vice president for credit. In 2007, after Kolchinsky raised questions concerning the ratings of new deals in light of subprime downgrades, Moody’s removed him from his client-facing position. Kolchinsky supervised methodology for structured finance valuations at Moody’s Analytics for two years, before Moody’s suspended him altogether in 2009. Separated from Moody’s, Kolchinsky testified before Congress …

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Lessons Learned: Chris Ricciardi, Matthew A. Lieber, Steven H. Kasoff Apr 2022

Lessons Learned: Chris Ricciardi, Matthew A. Lieber, Steven H. Kasoff

Journal of Financial Crises

Chris Ricciardi was a CDO pioneer who built the structured products units at CS First Boston and Merrill Lynch before moving to the asset management side. Ricciardi began his career structuring novel fixed-income securities at Prudential. At CS First Boston and Merrill, he catapulted each investment bank’s lagging unit into the top of the league tables for CDO (collateralized debt obligation) issuance. He was CEO of Cohen & Co. from 2006 to 2011, when he left to co-found investment management firm Mead Park Management. A graduate of the University of Richmond with an MBA from the Wharton School of the …

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Lessons Learned: Sohail Khan, Matthew A. Lieber, Steven H. Kasoff Apr 2022

Lessons Learned: Sohail Khan, Matthew A. Lieber, Steven H. Kasoff

Journal of Financial Crises

Sohail Khan was managing director of fixed-income sales at Citigroup from 2005–09. Khan started his finance career in 1996, after completing his MBA at Lahore University of Management Sciences (LUMS). Khan gained broad experience in product structuring and sales of credit derivatives at Citigroup. As managing director during the subprime securitization boom and bust, he was involved with institutional sales of asset-backed securities (ABS) including collateralized debt obligations (CDOs); his clients were hedge funds, structured vehicles, and institutional buyers. In 2009, Khan left Citigroup to co-found StormHarbour Securities, a boutique investment bank he has headed since as managing principal. This …

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Lessons Learned: Stephen King, Matthew A. Lieber, Steven H. Kasoff Apr 2022

Lessons Learned: Stephen King, Matthew A. Lieber, Steven H. Kasoff

Journal of Financial Crises

Stephen King started his career in finance at Bankers Trust in 1997 as a computer scientist with a business degree. He worked on structured credit transactions when credit derivatives were just being invented. In 2005, King joined Barclays’ structured credit group, where he managed a CDO (collateralized debt obligation) correlation desk that was different from standard dealer CDO units. In 2009, he launched C12 Capital Management to relieve Barclays of distressed subprime positions. Presently, King finances and builds luxury hotels as founder and CEO of Sardis Developments. This Lessons Learned summary is based on an interview with King.

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Lessons Learned: Steven H. Kasoff, Matthew A. Lieber Apr 2022

Lessons Learned: Steven H. Kasoff, Matthew A. Lieber

Journal of Financial Crises

Steve Kasoff was employed at Elliott Management Corporation from 2003 until 2020. His responsibilities centered on developing the structured products and real estate groups at Elliott. He was made senior portfolio manager, a member of the firm’s management committee, and equity partner. Kasoff has extensive experience in the origination, trading, and management of structured products such as collateralized debt obligations (CDOs) and mortgage-backed securities, including earlier posts at Deutsche Bank, Merrill Lynch, and Lehman Brothers. He earned his BA in economics from Yale College and his MBA in finance from the Wharton School of the University of Pennsylvania. In 2016, …

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Lessons Learned: James Finkel, Steven H. Kasoff, Matthew A. Lieber Apr 2022

Lessons Learned: James Finkel, Steven H. Kasoff, Matthew A. Lieber

Journal of Financial Crises

A Wall Street veteran specializing in structured credit transactions, Jim Finkel was co-founder and director of the structured credit asset management firm Dynamic Credit Partners (DCP) from 2003 to 2009. Finkel started his career as a securities lawyer for the international law firm Cadwalader, Wickersham & Taft LLP, before moving over to the banking side in 1992. He specialized in mortgage-backed securities and collateralized loan obligations (CLOs) for several firms, including Bear Stearns and Deutsche Bank, where he headed the London-based CLO group. In 2003, Finkel returned to New York to launch and run DCP. In 2010, he joined financial …

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A Special Project: Inside The Cdo Machine, Rosalind Z. Wiggins, Andrew Metrick Apr 2022

A Special Project: Inside The Cdo Machine, Rosalind Z. Wiggins, Andrew Metrick

Journal of Financial Crises

In this issue of the Journal of Financial Crisis, we feature Inside the CDO Machine—a special undertaking recently completed under the auspices of the Yale Program on Financial Stability Lessons Learned Oral History Project by Steven H. Kasoff, a Yale School of Management Fellow and former equity partner and head of real estate and structured products investments at the Elliott Management Corp., a global hedge fund. For the project, Kasoff undertook a series of interviews with industry professionals to focus on one of the critical derivatives products of the Global Financial Crisis (GFC), collateralized debt obligations (CDOs), and how they …

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Wall Street’S Subprime Debacle: Firsthand Accounts From Inside The Cdo Machine, Matthew A. Lieber, Steven H. Kasoff Apr 2022

Wall Street’S Subprime Debacle: Firsthand Accounts From Inside The Cdo Machine, Matthew A. Lieber, Steven H. Kasoff

Journal of Financial Crises

The observations, perceptions, and actions of participants in the subprime markets remain poorly documented and incompletely understood. Seeking to deepen our understanding, this study has produced seven interview summaries and one article telling the story of a hypothetical CDO deal. This article is organized in four parts. First, it presents our research questions and methods in relation to the existing knowledge on the topic. Second, it describes what we think are the study’s main contributions. Third, it previews the Lessons Learned summaries and interviews from each of the participants. And last, it identifies what we believe are some of the …

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Anatomy Of A Trade: The Making Of A Subprime Cdo, Steven H. Kasoff Apr 2022

Anatomy Of A Trade: The Making Of A Subprime Cdo, Steven H. Kasoff

Journal of Financial Crises

This article presents a short story, a sketch in eight parts of a single fictitious subprime collateralized debt obligation (CDO) transaction. The story is informed by expert interviews, documentary research, and the author’s firsthand experience.

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The Rescue Of The Us Auto Industry, Module Z:Overview, Rosalind Z. Wiggins, Greg Feldberg, Alexander Nye, Andrew Metrick Apr 2022

The Rescue Of The Us Auto Industry, Module Z:Overview, Rosalind Z. Wiggins, Greg Feldberg, Alexander Nye, Andrew Metrick

Journal of Financial Crises

In the fall of 2008, credit markets tightened amid a broader economic downturn that severely impacted the US auto industry, especially the three largest domestic manufacturers, General Motors (GM), Ford Motors, and Chrysler. The companies requested assistance from the government in a bid to stay afloat, but Congress declined to authorize funding. The Bush administration, however, provided bridge loans to GM and Chrysler under the Auto Industry Finance Program (AIFP), funded through the Troubled Assets Relief Program (TARP), to sustain them until the Obama administration was in place. Within months, the Obama administration decided that a speedy bankruptcy would be …

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The Rescue Of The Us Auto Industry, Module G: The Auto Warranty Commitment Program, Benjamin Henken Apr 2022

The Rescue Of The Us Auto Industry, Module G: The Auto Warranty Commitment Program, Benjamin Henken

Journal of Financial Crises

On March 30, 2009, President Barack Obama announced a plan for government-funded protection of warranties on new vehicles sold by General Motors (GM) and Chrysler while the companies underwent restructuring. The initiative, which would become known as the Auto Warranty Commitment Program (AWCP), was intended to bolster consumer confidence by alleviating a major risk—the loss of warranty benefits—to consumers associated with the companies’ potential bankruptcies. Under the AWCP, GM and Chrysler established independent special purpose vehicles (SPVs) to which they transferred a combination of their own money along with funding they received from Treasury in the form of a loan. …

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The Rescue Of The Us Auto Industry, Module E: Emergency Assistance For Chrysler Financial, Alexander Nye Apr 2022

The Rescue Of The Us Auto Industry, Module E: Emergency Assistance For Chrysler Financial, Alexander Nye

Journal of Financial Crises

In the fall of 2008, due to the confluence of the Global Financial Crisis and years of structural decline in the auto industry, Chrysler was nearing bankruptcy. Chrysler’s related finance company, Chrysler Financial, was also in dire straits. On December 19, 2008, President Bush announced the Automotive Industry Financing Program and that the US Treasury would extend Chrysler a $4 billion Bridge Loan to give the company time to prepare a viable restructuring plan. Two weeks later, the Treasury arranged $1.5 billion in low-interest financing for Chrysler Financial to fund the securitization of new consumer car loans and the facility …

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The Rescue Of The Us Auto Industry, Module F: Auto Supplier Support Program, Riki Matsumoto Apr 2022

The Rescue Of The Us Auto Industry, Module F: Auto Supplier Support Program, Riki Matsumoto

Journal of Financial Crises

The Global Financial Crisis that began in 2007 intensified the decade-long malaise of two of the largest auto manufacturers in the US, General Motors and Chrysler. Their possible collapse was deemed to pose a systemic risk by the United States government. In response, the Department of the Treasury made efforts to provide support to the automotive industry through the Automotive Industry Financing Program (AIFP). As US auto parts suppliers experienced deteriorated automotive markets, disrupted manufacturer operations, and stressed credit markets, the Treasury announced the Auto Supplier Support Program (ASSP) on March 19, 2009, as an auxiliary program to the overall …

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The Rescue Of The Us Auto Industry, Module C: Restructuring Chrysler Through Bankruptcy, Alexander Nye Apr 2022

The Rescue Of The Us Auto Industry, Module C: Restructuring Chrysler Through Bankruptcy, Alexander Nye

Journal of Financial Crises

In late 2008, due to the confluence of the financial crisis and years of structural decline in the auto industry, Chrysler was nearing bankruptcy. The US Treasury provided Chrysler’s owner, Chrysler Holding, with a $4 billion bridge loan and Chrysler’s related finance company, Chrysler Financial, with a $1.5 billion financing program under the Troubled Assets Relief Program (TARP). The government-led restructuring through bankruptcy involved the commitment of roughly $5 billion in debtor-in-possession (DIP) loans from the US Treasury and the Canadian government, under which the US Treasury ultimately lent $1.89 billion, using TARP funds, and Canada lent about $1 billion, …

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The Rescue Of The Us Auto Industry, Module D: Emergency Assistance To Ally Financial (Formerly Gmac), Riki Matsumoto, Kaleb B. Nygaard Apr 2022

The Rescue Of The Us Auto Industry, Module D: Emergency Assistance To Ally Financial (Formerly Gmac), Riki Matsumoto, Kaleb B. Nygaard

Journal of Financial Crises

In 2008, GMAC was a $200 billion company providing financing to General Motors customers. As the Global Financial Crisis entered a critical stage in early 2008, GMAC’s funding strategy and liquidity position were adversely affected by the significant disruption in credit markets and the broader economic downturn. This reduced access to financing, which impacted GMAC’s ability to provide automotive wholesale inventory and retail financing to General Motors and Chrysler. In late 2008 and early 2009 GM and Chrysler underwent a complex restructuring process. To restore liquidity to GMAC’s auto finance business, the Federal Reserve agreed to expedite GMAC’s conversion to …

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The Rescue Of The Us Auto Industry, Module A: Automotive Bridge Loans, Alexander Nye Apr 2022

The Rescue Of The Us Auto Industry, Module A: Automotive Bridge Loans, Alexander Nye

Journal of Financial Crises

In 2008, in the midst of the Global Financial Crisis, America’s Big Three automakers neared their breaking point. Two of them, General Motors (GM) and Chrysler, asked Congress for funding to prevent uncontrolled bankruptcies. Policymakers realized these uncontrolled bankruptcies would damage the manufacturing sector. Congress considered but failed to pass a framework conditioning short-term financing on the companies’ producing acceptable restructuring plans. With the companies warning that they could not survive the coming presidential transition, on December 19, 2008, President George W. Bush announced the Automotive Industry Financing Program (AIFP) under the authority of the Emergency Economic Stability Act (EESA) …

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The Rescue Of The Us Auto Industry, Module B: Restructuring General Motors Through Bankruptcy, Kaleb B. Nygaard Apr 2022

The Rescue Of The Us Auto Industry, Module B: Restructuring General Motors Through Bankruptcy, Kaleb B. Nygaard

Journal of Financial Crises

As the Global Financial Crisis worsened in 2008, credit markets tightened and a broader economic downturn developed, hitting the auto industry particularly hard. The crisis intensified a decade-long decline of the largest US auto manufacturers. Because of its size and importance to the economy, the US government decided to provide assistance to General Motors (GM) to sustain it while it developed plans for its long-term viability. Congress declined to authorize funding for the auto manufacturers, but in December 2008, Treasury provided a bridge loan to GM under the Troubled Assets Relief Program (TARP) to sustain the company until the Obama …

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Broad-Based Capital Injection Programs, June Rhee, Junko Oguri, Greg Feldberg, Andrew Metrick Apr 2022

Broad-Based Capital Injection Programs, June Rhee, Junko Oguri, Greg Feldberg, Andrew Metrick

Journal of Financial Crises

This paper surveys 36 broad-based capital injection (BBCI) programs and attempts to identify some best (and worst) practices. We argue that it is crucial to distinguish between programs implemented during acute (“panic”) and chronic (“debt overhang”) phases of a crisis, where the goals of program design should be different. In an acute phase, programs should be designed to influence the behavior of bank counterparties, while in chronic phases, the focus should be on bank behavior itself. With this framing, we identify seven themes to guide program design, and provide many illustrative examples for the policymaker’s tool kit.

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The Effect Of Quantitative Easing On U.S. Stock Prices And Wealth Inequality, Griffin W. Phillips Apr 2022

The Effect Of Quantitative Easing On U.S. Stock Prices And Wealth Inequality, Griffin W. Phillips

Student Scholar Showcase

My thesis will investigate and try to find a casual relationship between Quantitative Easing, or “QE”, and the U.S. stock market since 2003. The secondary effects will then be investigated to see if stock prices impact wealth inequality. To find the causal relationship between the two a regression model will be used. It predicts the magnitude of effects for QE and other variables that may impact stock prices. Since 2007-2009, the Federal Reserve has used QE as a means to spur economic growth. This expansionary monetary policy has impacted many financial markets including the U.S. stock market. Finding the extent …

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Non-Profits And Living Wages, Jack Buckley Apr 2022

Non-Profits And Living Wages, Jack Buckley

School of Professional and Continuing Studies Nonprofit Studies Capstone Projects

Non-Profit organizations must find ways to divide their budgets between staff wages and program services, as well as paying their staff a living wage. Unlike for-profits who can increase prices for consumers when they need to increase staff wages, non-profits do not have this luxury. The goal of this project was to collect data on how non-profits manage their budgets and if they provide staff with living wages. A survey was sent out with a total of eight responses, giving a breakdown of various non-profit’s budgets and if they pay a living wage. Overall, seven out of eight non-profits pay …

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Payday Lending: Reforming This Predatory Practice In Minnesota, Courtney Colton, Karmy Luker, Addy Haarstad-Mead, Sarah Turpen Apr 2022

Payday Lending: Reforming This Predatory Practice In Minnesota, Courtney Colton, Karmy Luker, Addy Haarstad-Mead, Sarah Turpen

Master of Social Work Student Policy Advocacy Briefs

Payday lending is a service that was intended to provide emergency financial relief to those who cannot afford an unexpected expense. However, 7 out of 10 borrowers use loans to cover monthly living expenses such as rent, utilities, and maintaining food security. With steep annual percentage rates averaging 391% and subsequent repeat borrowing, communities targeted by predatory lending companies fall deeper into the cycle of debt. Minnesota must reform their policies surrounding payday lending implementing legislative changes to protect Minnesotans who rely on payday loans and invest in long-term solutions that eliminate the need for a payday loan.

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Recessionary Effects On Transfer Fees In European Professional Football, Pierce Snyder Apr 2022

Recessionary Effects On Transfer Fees In European Professional Football, Pierce Snyder

Honors Theses

Association football, most commonly referred to internationally as football, is the world’s most popular sport with billions of fans. Professional football leagues operate in countries all over the globe. While other continents have prominent and successful teams, Europe is the sport’s summit for the club level of competition. Europe boasts the best five leagues in the world, commonly referred to as “the big five”: the Bundesliga (Germany), La Liga (Spain), Ligue 1 (France), Premier League (England), and Serie A (Italy). In the 2016-2017 season, these five leagues accounted for 12.6 billion pounds—57.5 percent—of European football’s revenues of about 21.9 billion …

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Overconfidence And Welfare In A Differentiated Duopoly, Jean-Baptiste Tondji Apr 2022

Overconfidence And Welfare In A Differentiated Duopoly, Jean-Baptiste Tondji

School of Economics and Finance Faculty Publications

We examine whether owners' decisions to delegate corporate responsibilities to overconfident managers improve welfare. We develop a dynamic model with product differentiation, where firms compete in cost-reducing research and development (R&D) and output. Before firms compete, each owner makes a strategic decision whether to hire an overconfident manager. The results reveal that when R&D technology is less productive, owners hire overconfident managers who overinvest in cost-reducing R&D. These strategic decisions improve welfare when spillovers are small and R&D productivity is low, or spillovers are large, or product differentiation is strong.

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Essays On Information Diffusion And Stock Market Efficiency & Analyst Style, Zuben Jin Apr 2022

Essays On Information Diffusion And Stock Market Efficiency & Analyst Style, Zuben Jin

Dissertations and Theses Collection (Open Access)

The dissertation consists of three chapters on information diffusion and stock market efficiency and analyst style. The first chapter examines the asset pricing implications of investors’ inattention to non-obvious firm relatedness hidden in earnings calls. This chapter documents that the overlap in attention allocation over various business aspects serves as a time-sensitive proxy for firm relatedness. By employing the unsupervised topic modelling methodology, I characterize the attention allocation of earnings conference call participants (executives, investors and analysts) over topics discussed. I construct a novel cross-firm topic similarity measure that captures difficultto-observe and time-varying firm relatedness compared with existing peer-firm classification …

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Information Acquisition And Market Friction, Bo Sang Apr 2022

Information Acquisition And Market Friction, Bo Sang

Dissertations and Theses Collection (Open Access)

My dissertation consists of three papers related to information diversity, acquisition, and asymmetry. One part of the dissertation explores the implications of interactions among different market participants and subsequent price efficiency in the stock market. The empirical findings indicate the information diversity between individuals and institutional investors, as well as an important channel for retail investors to obtain useful information – through insider filings. The remaining part investigates the information asymmetry between issuers and naive investors in the cryptocurrency market. In Chapter 2, I aggregate trading signals from hedge funds and retail investors, in order to examine their information diversity …

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Investor Sentiment And Paradigm Shifts In Equity Premium Forecasting, Liya Chu, Kai Li, Tony Xue-Zhong He, Jun Tu Apr 2022

Investor Sentiment And Paradigm Shifts In Equity Premium Forecasting, Liya Chu, Kai Li, Tony Xue-Zhong He, Jun Tu

Research Collection Lee Kong Chian School Of Business

This study investigates the impact of investor sentiment on excess equity return forecasting. A high (low) investor sentiment may weaken the connection between fundamental economic (behavioral-based non-fundamental) predictors and market returns. We find that although fundamental variables can be strong predictors when sentiment is low, they tend to lose their predictive power when investor sentiment is high. Non-fundamental predictors perform well during high-sentiment periods while their predictive ability deteriorates when investor sentiment is low. These paradigm shifts in equity return forecasting provide a key to understanding and resolving the lack of predictive power for both fundamental and non-fundamental variables debated …

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Why Commonality Persists?, Chyng Wen Tee, Raja Velu, Zhaoque Zhou Apr 2022

Why Commonality Persists?, Chyng Wen Tee, Raja Velu, Zhaoque Zhou

Research Collection Lee Kong Chian School Of Business

We show that order flows do not exhibit predictive power on asset returns, and their relationships have been static over time. We use a reduced-rank regression formulation to model both returns and the order flows as endogenous variables, and use investors' sentiment and attention as exogenous factors. We provide empiricalevidence to demonstrate that cross-sectional commonality in attention (sentiment) is linearly (nonlinearly) associated with both returns and order flows at the intraday level, while the sentiment and attentionmeasures themselves exhibit a nonlinear mutual relationship, thus revealing the multi-dimensional aspect of the commonality relationship.

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Unconventional Monetary Policy And Disaster Risk: Evidence From The Subprime And Covid–19 Crises, Gustavo S. Cortes, George P. Gao, Felipe B. G. Silva, Zhaogang Song Apr 2022

Unconventional Monetary Policy And Disaster Risk: Evidence From The Subprime And Covid–19 Crises, Gustavo S. Cortes, George P. Gao, Felipe B. G. Silva, Zhaogang Song

Research Collection Lee Kong Chian School Of Business

We compare the interventions conducted by the Federal Reserve in response to the subprime and COVID–19 crises with respect to their effectiveness in reducing disaster risk. Using model-free measures of disaster risk derived from daily options data, we document that interventions in response to both crises reduced tail risks in domestic equity markets. The spillover effects of the two crises have been markedly dissimilar. While subprime interventions are generally characterized by negative spillovers to international equity markets, policy responses to the COVID–19 crisis are generally associated with positive spillovers. We interpret these results as consistent with the different degrees of …

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Do Underwriters Short-Change Corporations Issuing Bonds?, Choo Yong, Jeremy Goh, Lisa Yang Apr 2022

Do Underwriters Short-Change Corporations Issuing Bonds?, Choo Yong, Jeremy Goh, Lisa Yang

Research Collection Lee Kong Chian School Of Business

We confirm prior evidence that bonds on average are offered at prices below their immediate post-offer secondary market prices. However, in cases where banks lead-manage their own bond offerings the underpricing is significantly less as compared to other non-self-marketed offerings. These findings are robust across various matched samples and selection models. Our results suggest that the bond offering process is characterized by substantive agency conflicts between shareholders of corporations (issuers) and underwriters.

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