All that matters in finance and risk management

Author Monika Gehde-Trapp

Central Clearing and CDS Market Liquidity

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.

Go Boldly Where Institutional Investors Are – Measuring Institutional Investor Attention

How do you measure institutional investor attention? Aggregate attention is easier to capture. You can look at trading volume (which reflects the transactions of all investors) as an indirect measure. You can look at front-page articles in influential newspaper as… Continue Reading →

With Youth Comes Risk – Fund Manager Age Affects Job Risk

Job security is of major importance for most people – and fund managers are no exception. In their influential Quarterly Journal of Economics paper “Career Concerns of Mutual Fund Managers” from 1999, Chevalier and Ellison explore whether career concerns affect… Continue Reading →

The Virtuous Circle of Investor Attention in Social Media

In previous posts, we discussed how media and firms can succefully draw investor attention. In this post, we shift the focus to investors themselves. The 2016 Journal of Behavioral Finance paper “Investor Attention on the Social Web” by Li, Hendler,… Continue Reading →

How Financial Markets Incorporate News – A Case Study of the Grenfell Tower Disaster Using Regression Discontinuity

On June 14, 2017, a fridge-freezer on the 4th floor of the Grenfell Tower block in London caught fire. The fire quickly spread, causing a horrible loss of at least 80 lives and injuring more than 70 people. Firefighters quickly… Continue Reading →

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