Sovereign CDS and mutual funds: Global evidence

Mutual excitation in eurozone sovereign CDS

We study selfand cross-excitation of shocks in the Eurozone sovereign CDS market. We adopt a multivariate setting with credit default intensities driven by mutually exciting jump processes, to capture the salient features observed in the data, in particular, the clustering of high default probabilities both in time (over days) and in space (across countries). The feedback between jump events an...

Sovereign wealth funds in the mutation of global finance

Sovereign wealth funds (SWFs) started making the headlines in the midst of the global financial crisis. They were welcomed neither by academics nor by politicians of Western countries. In a flurry of 2008 papers SWF were peremptorily told what they should and shouldn’t do. The reasoning underlying the prescriptive norms was flawed in two respects. First it simply equated SWFs to other instituti...

Mutual Funds and Banking: India and Global Experience

The role of investors’ objective financial knowledge on the assessment of risk disclosures in mix mutual funds advertisements in Iran (The evidence of mutual funds in Iran)

Financial literacy of investors reduces uncertainty on future decisions and increases predictability of investment policies in financial markets. Thus, the lack of clear information on financial markets is a determining factor in the arrival of domestic and foreign capitals and their quick exit in case of crisis. The lack of transparency and basic knowledge on decisions and failure to provide r...

Compensation Incentives and Risk Taking Behavior: Evidence from Mutual Funds

This paper examines the role of compensation contracts in determining risk taking decisions by money managers in the nancial industry. A methodology is developed for empirically testing and assessing the magnitude of the e ect that incentive contracts have on risk taking in the mutual fund industry using panel data. The methodology exploits the withinyear cross sectional variation in the perfor...