Finance
Investment growing in high-risk litigation lawsuits
Investing in lawsuits is relatively new and inherently risky. But that has not stopped a number of firms from taking up the challenge. In doing so, they are finding a
6 reasons 2015 will be defined by market volatility
Markets spent most of 2014 calmly moving up, but 2015 may be a different story. Outside of a brief surge in volatility in October, markets were complacent throughout 2014. Even
There is nothing normal about risk and uncertainty
Much of risk and all uncertainty are inaccessible to mathematical tools. Alternate analytical methods are needed. Standard models in financial economics – including risk models – are under great scrutiny.
Forex scandal exposes difficulty of financial regulation
The latest foreign exchange fixing (forex) scandal, which led to a $4.3 billion bank settlement with American, British, and Swiss regulators reinforces the difficulties of effectively regulating the financial markets.
Turkish Bank Asya feels the political heat
Turkish Bank Asya has recently come under intense scrutiny through government investigations. Though the bank continues to deny all allegations, evidence is growing that the bank’s books may not all be
Book Review: The Pillars of Finance
The Pillars of Finance: The Misalignment of Finance Theory and Investment Practice. By Guy Fraser-Sampson. Palgrave Macmillan, 2014; 260 pages Guy Fraser-Sampson’s new book argues Modern Portfolio Theory fails to
More emerging economies enter bond markets
Countries across Africa and Latin America have expressed a desire to begin or expand the sale of government bonds. Markets seem willing to take them up on their offer. Interest in the
Managing differences between diversifiable and systemic risk
A hierarchical risk management system is not the best way to go. It is costly and the benefits are insufficient. Diversification suggests a different approach. In a letter to JPMorgan
US credit rating reform comes up short
US legislators have proposed several reforms of the US credit rating system. Yet, incentives for credit agencies remain misaligned, while a new subprime market begins to grow. Financial regulation in
Russian investments at risk from Ukraine sanctions
Ukraine has passed a new law “On sanctions,” which poses a wide range of risks for Russian investors and companies. While investors from Europe and the US are highly unlikely to
