News

Master of Finance Program Enters Sixth Year
August 28, 2014

Although just starting its sixth year, the program recently earned recognition from the Financial Times, which ranked it in the top tier of finance programs internationally, based on such criteria as post-graduation salaries, geographic mobility, and the course experience itself, said Master of Finance program director Heidi V. Pickett. Read the full story here

Robert Merton lectures at the 5th Lindau Meeting on Economic Sciences
August 22, 2014

At the annual gathering of Nobel Laureates and young scientists, Professor Merton presents "Measuring the Connectedness of the Financial System: Implications for Systemic Risk Measurement and Management".  Click here to watch the video.           

Jonathan Parker: The effectiveness of tax rebates as countercyclical fiscal policy
June 20, 2014

Governments around the world are searching for macro-stimulation instruments. This column discusses evidence showing that rebate-type payments policies generate substantial increases in demand for goods and services. In particular, a large portion of tax rebates are spent rapidly on arrival.

Read more here: http://www.voxeu.org/article/macro-stabilisation-and-tax-rebates

Felipe Severino: Taking a chance with better bankruptcy protection
June 19, 2014

New research by MIT Sloan Finance PhD student, Felipe Severino, finds increased personal bankruptcy protection pre-2005 led to increase in household debt, but without measurable increase in average defaults. Visit the MIT Sloan Newsroom to read more about this paper that won first prize at the MIT Sloan Doctoral Research Forum.

Financial Times: MIT Sloan Professor of Practice, Andrei Kirilenko, volunteers to help stabilise Ukraine’s economy
June 19, 2014

Kirilenko has recently spent three-and-a-half weeks in the Ukraine, where he has been advising those in power on how to stabilise the economy and help the country grow. Now he is hoping to persuade others with knowledge and talent to volunteer too. The plan is to crowdsource expertise and he is inviting all those with business, educational, financial and legislative knowledge to contact him directly to help form a network to regenerate the country.

Read the full Financial Times article here.

Andrew Lo: How a new approach to funding Alzheimer’s research could pay off
June 19, 2014

More than 5 million Americans suffer from Alzheimer’s disease, the affliction that erodes memory and other mental capacities, but no drugs targeting the disease have been approved by the U.S. Food and Drug Administration since 2003. Now a paper by an MIT Sloan professor, Andrew Lo, suggests that a revamped way of financing Alzheimer’s research could spur the development of useful new drugs for the illness. Visit the MIT News Office to read more about this exciting research.

Research Spotlight: Erik Loualiche
June 10, 2014

Professor Erik Loualiche recently authored a piece for Fortune Magazine that argues that equity markets, rather than credit conditions, drive buyout activity

Read the article here>>

http://fortune.com/2014/04/23/whats-driving-the-buyout-comeback/

Finance Group Faculty honored at the 2014 MIT Sloan Excellence in Teaching Awards
May 28, 2014

The MIT Sloan School of Management held its annual Excellence in Teaching awards ceremony on May 7, 2014. Two members of the Finance Group faculty were recognized at the event. Andrew W. Lo was awarded the Samuel M. Seegal Prize, in recognition of his having inspired students in pursuing and achieving excellence. Dirk Jenter, a visiting finance professor from Stanford Graduate School of Business, was presented with the Outstanding Teacher Award.

Read more about the event here: http://mitsloan.mit.edu/newsroom/2014-excellence-in-teaching-awards.php

Mark Kritzman wins two Bernstein Fabozzi/Jacobs Levy Outstanding Article Awards
February 5, 2014

MIT Sloan Senior Lecturer Mark Kritzman has won two Bernstein Fabozzi/Jacobs Levy Outstanding Article Awards, which recognize research excellence in the theory and practice of portfolio management. These annual awards for articles appearing in The Journal of Portfolio Management are based on subscriber voting.

The first winning paper, “Liquidity and Portfolio Choice: A Unified Approach” (The Journal of Portfolio Management, Winter 2013), is co-authored with Will Kinlaw and David Turkington (both of State Street). The article illustrates innovative techniques for investors to determine the optimal allocation to illiquid assets. Mark’s second awarded paper, “Risk Disparity” (The Journal of Portfolio Management, Fall 2013), addresses how to balance growth of portfolio wealth over time with avoidance of large draw-downs.

Research Spotlight: Jean-Noel Barrot
January 24, 2014

Professor Jean-Noel Barrot recently authored an opinion piece for WSJ’s MarketWatch that questions the current venture-capital model. He suggests that venture-capital funds and limited partners should consider alternative models that better match the duration of the fund to the expected duration of the investment, which may be longer than the standard 10-year life of most funds.

Read the article here>>

http://www.marketwatch.com/story/why-the-next-big-ideas-might-not-get-money-they-need-2014-01-02

Meeting Global Challenges of Funding Retirement
January 23, 2014

Professor Robert Merton recently gave the SKBI Public Lecture at Singapore Management University where he discussed problems that retirement systems around the developed world are facing. 

View photos and videos from the event here.

Thinking about health as an investor might
May 11, 2013

A new study by Professor Andrew Lo, James Watkins and Dimitrios Bias shows that investment in disease research brings significant returns and that there is significant variation among diseases, with some harder to diagnose and treat.

Andrew Lo elected to the American Academy of Arts and Sciences
April 24, 2013

Andrew Lo, Charles E. and Susan T. Harris Professor, is one of nine MIT faculty members elected to the American Academy of Arts and Sciences. Members of the academy include some of the world’s most accomplished scholars, scientists, writers, artists, and civic, corporate, and philanthropic leaders.

Innovation Risk: How to make smarter decisions
March 20, 2013

Professor Robert Merton is interviewed by the Investment Management Consultants Association on "Harnessing the Building Blocks of Economic Valuation" in the latest issue of The Journal of Investment Consulting.

Professor Antoinette Schoar named one of the top 10 academics by aiCIO Magazine
February 25, 2013

MIT Sloan Professor Antoinette Schoar has been named one of the top 10 academics influencing the institutional investment industry by aiCIO magazine. Schoar joins a group of academics who have significantly aided pensions, endowments, foundations, and sovereign wealth funds, as well as institutional investors who are fulfilling their obligations to stakeholders.

Student loans: Welcome to subprime university
February 14, 2013

Deborah Lucas, MIT Sloan Professor of Finance, recently talked to fortune magazine about government credit programs.