Finance Matters

Finance Matters

Finance Matters: The MIT Sloan Finance Group Blog

Finance Matters is the MIT Sloan Finance Group’s platform for sharing the latest on Finance faculty research, perspectives on financial industry news, MIT Sloan finance-related events, and will feature guest posts from our faculty, students, alumni, and affiliates.

Welcome to Finance Matters

Posted by MIT Sloan Finance Group on October 17, 2012

MIT is often referred to as home to the “pioneers of modern finance,” including luminaries such as Fischer Black, John Cox, Robert Merton, Franco Modigliani, Stewart Myers, Stephen Ross, Paul Samuelson and Myron Scholes. With traditions deeply rooted in finance, today the MIT Sloan Finance Group continues its commitment to training the next generation of finance professionals. Through new programs, growing course offerings, and a commitment to groundbreaking research and policy analysis, MIT remains a leader in financial thought and…
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Unfunded State and Local Healthcare Benefits, the Elephant in the Room?

Posted by Deborah Lucas on December 17, 2014

Last week Bob Pozen, a Visiting Senior Lecturer here at MIT Sloan with a distinguished background in government, business and education gave an eye-opening lunch talk. The topic was “Other Post-Employment Benefits” or OPEBs—which is accounting jargon for the liabilities governments incur for retiree healthcare. Here’s what he found: “The 30 largest American cities had over $100 BILLION in retiree healthcare deficits in 2013, as estimated by the Pew Charitable Trust. In that year, New York City showed the most…
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Tackling the challenges of governments as financial institutions

Posted by MIT Sloan Finance Group on October 2, 2014

From the MIT Sloan Newsroom: Governments not only regulate the private financial marketplace, they also own and operate some of the world’s largest financial institutions. Government agencies make trillions of dollars of loans, insure large and complex risks, and design new financial products. Yet their leaders often lack the analytical support and rigorous financial training of their peers in the private sector, and transparency is often lacking.   The MIT Center for Finance and Policy officially launched this month to…
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What is the optimal trading frequency in financial markets?

Posted by Haoxiang Zhu on September 25, 2014

Trading speeds in financial markets have increased dramatically over the last decade. In markets for equities, futures and foreign exchange, transactions take place in milliseconds to microseconds (or even nanoseconds). Markets for fixed-income securities like corporate bonds and over-the-counter derivatives like interest rate swaps and CDS are also catching up quickly by adopting electronic trading. The dramatic speed-up of financial transactions can perhaps only be matched by the intensity of the events and debates surrounding it, especially in the context…
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Opinions expressed in this blog are that of individuals and do not reflect the general opinion of Massachusetts Institute of Technology and MIT Sloan.