Monthly Archives: February 2018

How are Bond Yields Affected by a Firm’s Ties to the Federal Government?

By | February 13, 2018

Courtesy of Reza Houston Do bondholders benefit from connections with the federal government?  We know that in the United States, there is ample evidence political connections confer benefits on firms.  Firms which make PAC contributions, hire lobbyists, or employ former politicians are more likely to be bailed out[1], avoid enforcement[2], and receive lucrative government contracts[3]. … Read More »

If We Can, Does It Mean That We Should?  Volatility Linked ETPs and The Recent Crash

By | February 10, 2018

Market participants around the world are still reeling from this week’s wild ride that saw major U.S. indexes drop more than 5% and the Dow Jones Industrial Average swing by at least 1,000 points in all but one day. Early causal assessments pointed to the threat of rising interest rates and inflation, political uncertainty in… Read More »

Federal Reserve Consent Order Represents Worst Case Scenario for Wells Fargo Directors

By | February 6, 2018

Janet Yellen ended her tenure as Chair of the Federal Reserve with a bang last Friday when the Federal Reserve Board (the Board) voted 3-0 to issue a consent cease and desist order that imposes unprecedented sanctions on Wells Fargo for its phony-accounts scandal and other “widespread consumer abuses.” The primary sanction is a restriction… Read More »