capital market theory

But as well as replenishing lost capital with funding from ILS and capital markets, reinsurers increasing use of alternative capital, particularly in their ... “alternative capital is likely to cause a permanent reduction in profit for property-catastrophe business,” which supports our own theory that re/insurers will ...

Economic theory shows that this can easily lead to an overshoot, where even rational investors temporarily push an asset's price beyond its long-term ... Robert Vishny proposed to make this sort of constraint, which they grouped under the general heading of "limits to arbitrage", a unifying theory of financial market failures.

In 1997, Andrei Shleifer and Robert Vishny proposed to make this sort of constraint, which they grouped under the general heading of “limits to arbitrage”, a unifying theory of financial market failures. Research on just why and how smart, well-informed traders are unable to cancel out bubbles continues to ...

In 1997, Andrei Shleifer and Robert Vishny proposed to make this sort of constraint, which they grouped under the general heading of "limits to arbitrage," a unifying theory of financial market failures. Research on just why and how smart, well-informed traders are unable to cancel out bubbles continues to ...

If China were to suddenly sell off Treasurys, the ensuing higher interest rates could, in theory, become a serious problem for the debt. Today, the Treasury pays relatively little in interest because rates are so low, even though the debt is high. “If interest rates are higher or lower, that will make a pretty big ...

A recent academic study that we published in Auditing: A Journal of Practice & Theory finds significant capital market benefits in having sustainability reporting assured, including reduced cost of capital and lower analyst forecast errors and dispersion (see “Understanding and Contributing to the Enigma of ...

And while there is no universal consensus on what caused the housing boom and bust, these events have, understandably, sparked many economists' interest in theories that financial market imperfections allow for excessive volatility in asset prices that then lead to major fluctuations in aggregate output ...

In order to better understand randomness in the financial markets, a team of scientists from Tokyo Institute of Technology recently analyzed the decisions of high-frequency foreign exchange traders. Based on their results, the researchers developed a theory that explains the randomness in financial markets ...

Two new synthetic compounds that can kill methicillin-resistant S. aureus(MRSA), have been created. MRSA, a bacteria that causes many infections in humans, is multi-drug resistant and current antibiotics are not able to kill it. The two new compounds, which were able to destroy both thriving and dormant ...

Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Seagate .... A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it.

Private insurers could also access private capital markets and design contracts with other insurers that allow them to partake in some of the long-term benefit of early high-value care when individuals switch between plans. For instance, an insurer that covers HCV therapy for an individual could, in theory, ...

Thus, they developed a framework that parallels the kinetic theory of molecules[5], which forms the theoretical basis of physical Brownian motion. They conclude that their model, rooted in standard physics, provides a solid foundation for understanding price fluctuations in stable financial markets. They also ...

Amihud and Mendelson addressed this question more than thirty years ago in a paper in the Journal of Financial Markets. They said that postulating a liquidity risk premium resolves a puzzle raised by the capital asset-pricing model. Given CAPM, expected stock returns should increase linearly with their ...

Consistently recurring characteristics on multiple layers apparently bring order in a seemingly chaotic financial market environment. "Applying Dynamic Chaos Theory to Analyze Financial Markets - Part 2, Good Investment Practice" elaborated on how to make good investment decisions. This publication ...

In theory, this also implies that crude prices are based on extremely shaky numbers as well as sentiment, and one person who is concerned about the effect the price structures will have on fundamentals is Michael Tran, global energy strategist for RBC Capital Markets. Tran told Bloomberg, "we do think ...

But at least some economists still believe that, whatever happens in Congress, some life insurers still engage in activities that, in theory, could rattle the U.S. ... in the past about topics such as government bailouts of private financial institutions, stress testing, and ideas about why financial markets freeze.

A new study by researchers at the Federal Reserve Bank of New York suggests that bondholders still don't believe the government would ever let the firms collapse into bankruptcy -- after a decade of efforts by regulators to convince them otherwise. But at least one analyst who tracks big Wall Street firms' ...

Samvitti Capital, a SEBI registered asset management boutique founded by first generation professionals and based out of Mulki, Karnataka, today announced the launch of its new Alternative Investment Fund (AIF). The new category 3 Fund called 'Samvitti Capital Alpha Opportunities' will be open ended ...

With new pledge, Nathan Cummings Foundation moves to align endowment with mission. This is no time for business as usual, Sharon Alpert, president of the Nathan Cummings Foundation, made clear in a note last year, when it boosted its grant-making to challenge xenophobia, racism and attacks on ...

Popular theories include U.S. computer scientist Nick Szabo and Australian businessman Craig Steven Wright. Additionally, a “Satoshi” is the ... Although Milton Friedman said there's no such thing as a free lunch in financial markets, this isn't exactly the case in cryptocurrency markets. From time to time, ...

Games Theory and Optimal Control Theory provide powerful tools to tackle these kinds of questions in a satisfactory way. These tools are not specific to the example presented above and can be used for any system of interacting intelligent agents (e.g. crowds dynamics; banking system; financial markets, ...

Here we focus on the capital and financial accounts, which tell the story of investment and capital market regulations within a given country. ... In today's global economy, the unrestricted movement of capital is fundamental to ensuring world trade and eventually, according to theory, greater prosperity for all.

Like an-eye-for-an-eye, a rational game theory strategy, this leads to a village of blind people. In this case, an end to the multilateral free-trade system. Yet, this is not the most likely scenario. The most likely scenario is to challenge the US action at the WTO. Moreover, and this is important, there is precedent ...

Financial market analysis based on chaos theory mathematics enables investors to improve risk management and make criteria-based decisions. ... allows for objective comparison between stock market indices, thus providing a helicopter view of the risks and potential associated to major financial markets.

One constant of financial markets is they suffer periods of collective greed and fear, which has resulted in such catastrophes as Britain's South Sea Bubble and the ... In this book, Soros explains his theory of comprehensive reflexivity and innovative investment practices to make the market work for you.

The suddenly volatile financial markets are giving traders, like this guy at the Chicago Mercantile Exchange, a reason to celebrate. (M. Spencer Green ... Wall Street loves a good conspiracy theory, especially when it might explain why the market just turned unexpectedly. Sure enough, an unnamed ...

If we were to apply the theory of demand and supply, then the capital markets would achieve a balance in this scenario with more companies listing and more ... With a pool of long term funds, life insurance companies amongst other institutional investors will act catalyst in capital market developments.

In his seminal book, George Soros describes his theory of reflexivity. It was what he attempted to write his PhD on, but the theory was tested in the way he applied it to the financial markets. The central thrust of the theory is that market participants are biased. As opposed to making consistently rational ...

Since the 1970s, economic policy has been based on the idea that financial market prices reflect all the information relevant to the value of any asset. If this is true, market prices are the best estimates of the value of any investment and financial markets should be relied on to allocate capital investment.

Following Trump's win, Kass, a four-decade Wall Street veteran and a prominent market commentator, bet against the U.S. stock market, beefing up his short positions on the assumption that equity markets would fall. His theory, shared by plenty of other Wall Street pros, held that Trump's lack of governing ...

Basic economic theory suggests that a weak currency is good news for domestic companies, as their exports become relatively cheaper and more competitive. This could be another reason for the performance of the S&P 500 and FTSE 100, with the constituents experiencing inflated demand for their ...