Zerohedge Nonsense Debunked
Why Did The Fed Inject Banks With A Record Amount Of “Other” Cash In The Past Week? [zerohedge] Fed did not “inject” anything as zerohedge claims. Definition: Other Deposits U.S. law allows a number of government-sponsored enterprises (GSEs) to maintain … Continue reading →
Central Bank Collateral Frameworks: Principles and Policies
IMF paper by Simon Gray, Alexandre Chailloux, and Rebecca McCaughrin Central bank collateral policies came under pressure with the 2007-08 financial market crisis. This paper addresses the rationale for and constraints in taking collateral, and recent practices in different collateral … Continue reading →
Velocity of Pledged Collateral: Analysis and Implications
IMF paper by Manmohan Singh Large banks and dealers use and reuse collateral pledged by nonbanks, which helps lubricate the global financial system. The supply of collateral arises from specific investment strategies in the asset management complex, with the primary … Continue reading →
Definition: IMF Quotas
Quota subscriptions are a central component of the IMF’s financial resources. Each member country of the IMF is assigned a quota, based broadly on its relative position in the world economy. A member country’s quota determines its maximum financial commitment … Continue reading →
The Reliability of Voluntary Disclosures: Evidence from Hedge Funds
Paper by Andrew J. Patton, Tarun Ramadorai, and Michael Streatfield We analyze the reliability of voluntary disclosures of financial information, focusing on widely-employed publicly available hedge fund databases. Tracking changes to statements of historical performance recorded at different points in … Continue reading →
The Impact of Sovereign Credit Risk on Bank Funding Conditions
From the Committee on the Global Financial System [BIS] Sovereign credit risk is currently a significant issue for European banks and over coming years may have implications for global financial stability. This report examines the relationship between sovereign credit risk … Continue reading →
Eurosystem: Revaluation Accounts
Mark to market quarterly, profits mostly due to gold and gold receivables
“Once Burned, Twice Shy: How Naïve Learning, Counterfactuals, and Regret Affect the Repurchase of Stocks Previously Sold”
Paper by Brad M. Barber, Terrance Odean, and Michal Strahilevitz We establish two previously undocumented patterns in the purchase selections of individual investors. These patterns hinge on investors’ previous experiences with a stock. We demonstrate that investors prefer to (1) … Continue reading →
Swayed by Friends or by the Crowd?
Paper by Zeinab Abbassi, Christina Aperjis, Bernardo A. Huberman We have conducted three empirical studies of the effects of friend recommendations and general ratings on how online users make choices. These two components of social influence were investigated through user … Continue reading →
