Knowledge and Training for Financial Decision Making!

NEWSLETTER of February 9, 2018

finexpert Community

This week we welcomed our 1600th finexpert-member!

Memberlist for non-members >more
Memberlist for members if logged in >more

 

The following content has been added at finexpert:


Studies > Corporate Finance

PwC

EFFIZIENZ DER KREDITPROZESSE IN DEUTSCHEN KREDITINSTITUTEN 2017

How efficient are credit processes in German banks? What are the implications of digitization in the lending business? Which distribution channels are still needed for lending? This PwC study addresses these and other questions. The results show that developments in retail and wholesale banking are far apart. And fewer houses than expected are already implementing a viable digitization strategy. Only a missed opportunity - or at least a danger for a successful future? >more

Studies > Performance

Willis Towers Watson

GLOBAL PENSION ASSETS STUDY 2018

The Global Pension Assets Study covers 22 major pension markets (the P22), which now totals USD 41,355 billion in pension assets and account for 67.0% of the GDP of these economies. The study includes an analysis of the seven largest markets (the P7) which includes Australia, Canada, Japan, Netherlands, Switzerland, UK and US and comprises 91% of total pension assets. >more

Studies > Risk Management

Hermes Investment Management

MARKET RISK INSIGHTS: BEFORE THE LUCK RUNS OUT

Polar exploration has been a recurrent theme for Market Risk Insights over the last year or so, perhaps inspired by the parallels investors now face as they trudge out into largely unmapped territory featuring extreme financial conditions. In the short term at least, most investors are expecting a temperate environment: not too hot, not too cold. Nonetheless, they must – taking a cue from the Norwegian explorer of the South Pole, Roald Amundsen – consider the likelihood of a number of future scenarios and plan accordingly. >more

Studies > Macro

World Economic Forum

CREATING A SHARED FUTURE IN A FRACTURED WORLD

More than 3,000 leaders from over 100 countries came together to focus on finding ways to reaffirm international cooperation on crucial shared interests, such as the environment, the global economy and international security in the spirit of the theme of the 48th Annual Meeting, Creating a Shared Future in a Fractured World. This report summarizes some of the insights from more than 400 sessions in the official programme, as well as outcomes from over 200 working sessions organized by Forum communities. >more


Research Papers > Alternative Investments

ALPHA OR BETA IN THE EYE OF THE BEHOLDER: WHAT DRIVES HEDGE FUND FLOWS?

Vikas Agarwal, T. Clifton Green, and Honglin Ren
2017
CAPM alpha explains hedge fund flows better than alphas from more sophisticated models. This suggests that investors pool together sophisticated model alpha with returns from exposures to traditional (except for the market) and exotic risks. We decompose performance into traditional and exotic risk components and find that while investors chase both components, they place greater relative emphasis on returns associated with exotic risk exposures that can only be obtained through hedge funds. However, we find little evidence of persistence in performance from traditional or exotic risks, which cautions against investors’ practice of seeking out risk exposures following periods of recent success. >more

Publications > Corporate Finance

THE COSTS OF SOVEREIGN DEFAULT: EVIDENCE FROM THE STOCK MARKET

Sandro C. Andrade, and Vidhi Chhaochharia
2017
We use stock market data to test cross-sectional implications of theories of sovereign default and provide a market-based estimate of sovereign default costs. We find that the stock prices of firms vulnerable to financial intermediation disruption, or firms more exposed to the government, are particularly sensitive to changes in sovereign credit spreads. This is consistent with theories in which default is costly because it disrupts financial intermediation and damages government reputation. Estimation of a structural valuation model indicates that the market prices stocks as if sovereign default has large effects on vulnerable stocks, translating to a 12% destruction of the value of their productive assets. >more