The director of the Laboratory for Financial Engineering at MIT, Professor Andrew Lo, believes that there has been a step-change in the technology: "All new technologies come with a certain degree of hype, but I do think there has been a material change in the technology today against where things stood even just five years ago."
Jonathan Parker is a finance professor at MIT's Sloan School of Management. He says, “When interest rates are extremely low then government spending is relatively cheap, and so that suggests that it's a good time to do things that you think you have to do at some point.” (1:47)
Haoxiang Zhu, a professor at MIT, studied the Fed's experience with reverse auctions in a paper published this year. He tells Central Banking it is "puzzling" the BoE's auction ran into trouble. "Market participants can always submit high-priced offers opportunistically – the worst case is that these offers are rejected by the BoE," he says. "It is difficult to believe that market participants are unwilling to sell at any price."
The academic community has wrestled for years with how best to assess and attribute returns generated by the growing army of hedge funds. The complexity in these funds' various methodological recipes pose a complicated analytical problem for academic researchers. MIT Sloan Professor Andrew W. Lo and his co-authors, Mila Getmansky Sherman, and Peter A. Lee, recently published a paper titled “Hedge Funds: A Dynamic Industry in Transition” that addresses this issue.
As technology continues to create disruption and innovation in the financial industry, an increasing number of MBA programs are adding fintech (financial technology) to their curricula. NYU Sternannounced a new fintech specialization in June, while UC Berkeley-Haas and MIT Sloan have been offering fintech courses since 2015.
Paying small suppliers late leads to a cash crunch and stressed-out entrepreneurs. But new data provides quantitative evidence behind the anecdotes of squeezed small businesses in the U.S.
The MIT Sloan School of Management and Harvard Business School conducted a study to examine the impact of new rules, which came into effect in 2011, dubbed “QuickPay” rules. Those guidelines accelerated payments to SME government contractors by 15 days, leading to a value of about $64 billion worth of contracts every year, reports said.
When it comes to corporate finance, Stewart Myers wrote the book—and some of the most important papers, too.... But in five decades as the go-to expert in his field, Myers—a finance professor at MIT Sloan—did something else remarkable. He earned the respect, admiration, and affection of everyone he’s worked with. Perhaps more than his seminal contributions to corporate finance, this, his colleagues say, is why Stew Myers matters.
The MIT Sloan School of Management recently announced that Robert C. Merton, a Nobel laureate in Economics and the School of Management Distinguished Professor of Finance, was named the recipient of the S. Donald Sussman Fellowship. The Fellowship is awarded to individuals or groups who best exemplify S. Donald Sussman’s career as a successful investor in quantitative investment strategies and models. Merton was selected for his wide-ranging contributions to modern financial economics, from his earlier work in modeling derivative securities to his more recent research on achieving financial security in retirement.
The MIT Sloan School of Management announces a major gift from alumnus Bennett (Ben) W. Golub to support the MIT Center for Finance and Policy. Dr. Golub is senior managing director and chief risk officer of BlackRock, the global investment and risk management firm. In recognition of his gift, the Center will be named the Bennett W. Golub Center for Finance and Policy (GCFP). The mission of the Center is to serve as a catalyst for innovative, cross-disciplinary and nonpartisan research and educational initiatives that address the unique challenges facing governments in their role as financial institutions and as regulators of the financial system.
Assistant Professor of Finance, Haoxiang Zhu, was voted as one of the 2016 Best 40 Under 40 Professors by PoetsandQuants.com, a news website which covers news related to business schools and MBA programs.
The student led MIT Impact Investing Initiative (MI3) took home the grand prize at MIINT, a $50k early stage impact investing competition with 25 participating teams from top ranked universities around the world (incl. HBS, Wharton, Stanford and Kellogg).
Richard Thakor won the 2016 MIT Sloan thesis prize for demonstrating that limiting financial constraints on a business can reduce the misallocation of assets and trigger economic growth.
A new study co-authored by an MIT professor, Xavier Giroud, shows that venture capitalists do help startup firms by closely monitoring their development, and that the availability of direct airplane flights between the two parties helps improve that oversight.
Professor Deborah Lucas and MIT Center for Finance and Policy (CFP) Executive Director, Doug Criscitello, provide a commentary about China's impact on the equity and foreign-exchange markets.
Professor Zhu discusses the stock trading venues known as “dark pools”, which are coming under renewed scrutiny from government regulators.
Stewart Myers, Professor of Financial Economics at the MIT Sloan School of Management, has been named the recipient of the Morgan Stanley – American Finance Association (AFA) Award for Excellence in Finance for 2016. The award is granted bi-annually to an individual with significant career achievements and outstanding thought leadership in the field of financial economics. Candidates are evaluated based on the fundamental, sustained, and broad impact of their research.
For terminal patients with no existing treatments, it seems to make sense to be more lenient and approve drugs that, in the end, may not be effective,” said Lo, director of the laboratory for financial engineering at the MIT Sloan School of Management. “There are desperate patients out there who view this differently than the regulators.”
Robert C. Merton, 1997 Nobel laureate in economics and MIT Sloan School of Management distinguished professor of finance, cautions that asset owners concerned with pension liabilities should be paying more attention to long-term, rather than short-term, rates.
A California congressman plans to file legislation next week that would create a more modest version of Lo’s plan: A $400 million fund to finance development of drugs for rare diseases — with the federal government acting as a backstop, providing financial guarantees to attract private investment. If it works, Lo said, taxpayers could profit and patients could get access to new treatments.
Is there an optimal level of bank liquidity and regulation? Visiting professor Douglas Diamond is trying to find out.
Douglas Diamond came to the MIT Sloan Finance Group this fall as the Fischer Black Visiting Professor of Finance and will focus the bulk of his research and study on bank liquidity holdings and financial crises. Diamond, who is on leave from the University of Chicago’s Booth School of Business, recently spoke about his work and his plans.