In a recent post, we discussed the Oehmke and Zawadowski (2017) paper. The authors identify hedging, speculation, and arbitrage as the main CDS trading motives. We now zoom in on one of these motives: hedging. The article “Mitigating Counterparty Risk”… Continue Reading →
US economist Richard Thaler has been awarded the Nobel prize in economics in 2017. The Royal Swedish Academy stated that Thaler receives the award “for his contributions to behavioral economics”. How does this contribution look?
We supervised a thesis this semester on the impact of central clearing on market liquidity for credit default swaps (CDS). In this post, we want to share the main results.
Forecasting returns is the holy grail of investment – and finance researchers are also interested in whether returns can be predicted because it tells us whether markets are “informationally efficient” (and thinking about this has been rewarded with a Nobel… Continue Reading →