Regulating Wall Street Acharya, Viral V; Cooley, Thomas F; Richardson, Matthew P ...
2010, 2010-10-28, c2011, Letnik:
608
eBook
'Regulating Wall Street' assesses the strengths and weaknesses of new regulations in response to the recent global financial crisis. It summarises key issues that regulatory reform should address, ...evaluates the key components of regulatory reform and provides analysis of how the reforms will affect financial firms and markets.
Crisis and Risk Management Scholes, Myron S.
The American economic review,
05/2000, Letnik:
90, Številka:
2
Journal Article
Recenzirano
Odprti dostop
Financial crisis and risk management are examined. Over the last several years, regulators have encouraged financial entities to use portfolio theory to produce dynamic measures of risk. VAR, the ...product of portfolio theory, is used for short-run day-to-day profit and loss-risk exposures. Now is the time to encourage the BIS and other regulatory bodies to support studies on stress-test and concentration methodologies. Planning for crises is more important than VAR analysis. Furthermore, such new methodologies are the correct response to recent crises in the financial industry.
The ultimate behind-the-curtain look at the hedge fund industry, unlocking the most valuable stories, secrets, and lessons directly from those who have played the game best. Written by Maneet Ahuja, ...the hedge fund industry insider, The Alpha Masters brings the secretive world of hedge funds into the light of day for the first time. As the authority that the biggest names in the business, including John Paulson, David Tepper, and Bill Ackman, go to before breaking major news, Ahuja has access to the innermost workings of the hedge fund industry. For the first time, in Alpha Masters, Ahuja provides both institutional and savvy private investors with tangible, analytical insight into the psychology of the trade, the strategies and investment criteria serious money managers use to determine and evaluate their positions, and special guidance on how the reader can replicate this success themselves. There are few people with access to the inner chambers of the hedge fund industry, and as a result it remains practically uncharted financial territory. Alpha Masters changes all that, shedding light on star fund managers and how exactly they consistently outperform the market. The book: * Contains easy-to-follow chapters that are broken down by strategy--Long/Short, Event Arbitrage, Value, Macro, Distressed, Quantitative, Commodities, Activist, pure Short, Fund of Funds. * Includes insights from the biggest names in the trading game, including Ray Dalio, Marc Lasry, Jim Chanos, Sonia Gardner, Pierre Lagrange, and Tim Wong. * Features contributions from industry icon Mohamed El-Erian Many of the subjects profiled in this groundbreaking new book have never spoken so candidly about their field, providing extremely provocative, newsworthy analysis of today's investing landscape.
An examination is made of derivatives in a dynamic environment. It is difficult to define financial derivatives in a dynamic environment. Purists might argue that any security is a derivative if its ...price dynamics depends on the dynamics of some other underlying asset or assets and time. This broad definition allows not only for what currently exists but also what new derivative instruments will be developed in the future with enhanced understanding and changing production costs. The popular press, however, tends to limit the definition to include financial options, futures and forward contracts either traded on an exchange or issued in the OTC industry. In the future they may come to be called financial products.
We test whether banks' investment and financing policies can be explained by tax status. We document changes in bank holdings of municipal bonds in response to changes in tax rules relating to ...deductibility of interest expense. We also document an association between banks' marginal tax rates and their investment and financing decisions, which is consistent with the existence of tax clienteles. However, banks do not sort themselves perfectly into investment and financing clienteles because of adjustment costs. We posit specific types of transaction-cost impediments to tax planning, and document that banks apparently trade off these costs against tax-planning benefits.
The global use of derivative instruments has grown in importance, because they are less expensive tools for hedging risks and for investing in securities. Because several entities have incurred ...substantial losses in derivatives, leading to bankruptcy in a few cases, and because the size of the derivative market appears so large, legislators and regulators around the world, who have limited information about derivatives, fear that further possible bankruptcies pose a systemic risk to the economy. This fear is unwarranted. Affected entities will continue to make infrastructure investments to support their valuable derivative business, a more beneficial alternative to political solutions.
The reduction in statutory tax rates from 46% prior to the 1986 Tax Act to 34% by the middle of 1988 gave firms an incentive to defer income in 1986 and 1987. Evidence is provided that firms deferred ...revenue recognition and/or accelerated expense recognition in anticipation of these declining tax rates. Two models are used to assess whether firms shifted income to future periods when they anticipated lower tax rates. The results suggest that, on average, 812 of the sample firms saved approximately $500,000 in taxes by deferring sales for one quarter. There is evidence of income shifting for each of the 3 largest quintiles of sample firms, but not for the 2 smallest size quintiles, which suggests that smaller firms are less opportunistic tax planners.
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