Category Archives: Digests

Downside Market Risk of Carry Trades

Downside Market Risk of Carry Trades
Victoria Dobrynskaya
Review of Finance, Volume 18, Issue 5, 1 August 2014, Pages 1885–1913,https://doi.org/10.1093/rof/rfu004

According to uncovered interest parity, free capital mobility ensures that investments in different currencies with different levels of local interest rates do not consistently generate excess returns because a positive interest rate differential should be compensated by the expected exchange rate depreciation of the target currency.Read more...

Regulating Conflicts of Interest: The Effect of Sanctions and Enforcement

Regulating Conflicts of Interest: The Effect of Sanctions and Enforcement
Michel Dubois; Laurent Fresard; Pascal Dumontier
Review of Finance, Volume 18, Issue 2, 1 April 2014, Pages 489–526,https://doi.org/10.1093/rof/rft010

Over the past decades, securities firms and their analysts have been accused of producing overly optimistic research (e.g., stock recommendations) to attract and retain investment banking clients.Read more...

Financial Sector Reform after the Subprime Crisis: Has Anything Happened?

Financial Sector Reform after the Subprime Crisis: Has Anything Happened?
Alexander Schäfer; Isabel Schnabel; Beatrice Weder di Mauro
Review of Finance, Volume 20, Issue 1, 1 March 2016, Pages 77–125,https://doi.org/10.1093/rof/rfu055

After the near-collapse of large parts of the financial system and unprecedented bail-outs in the subprime crisis, the leaders of the G20 agreed on the need to overhaul the financial system.Read more...