We analyze monetary conditions in US asset markets — corporate equity, real estate, Treasury bond and corporate & foreign bond — from a market specific perspective, proposing the concept of market leverage. Market leverage measures the average leverage of all asset holders in a particular...

Lobbying is a phenomenon which is already present in all political systems and it is not surprising if you consider the issue of lobbying within the formal structures of governance of financial markets and financial industry in the EU and Kosovo. However, the complex and inscrutable...

Policy debates within the BOJ has shifted toward making the QE programs more sustainable, for policymakers acknowledged it may take longer than expected to reach policy objective as rising costs become “hard to ignore;" possible policy changes may include tweaking the yield-curve control...

BIS’s Shin noted that a “snapback” in long-term interest rates represents the biggest risk in the global economy, as a decade of policy-induced yield-chasing not only directly lowered long-term rates but also begot further demand. With term premium decompress amid waning policy support,...

Active asset managers face asymmetric risks from a paradigm shift in monetary policy regimes and inflation trends, as some active funds increased risk-taking to compete with passive funds - the primary beneficiaries of prolonged low volatility. A decade of volatility and term premium suppression...

Treasury bills outperformed a broad cohort of asset classes following this year’s violent bouts of risk-parity unwind, as rising deficit, retreats from globalization, and waning stimulus favor high quality low duration instruments. At the same time, T-bills provide an effective hedge to a...

Global monetary authorities remained steadfast in policy normalization to pare unconventional easing programs, as Federal Reserve’s balance sheet run-off and China’s BRI loans created a perfect storm in dollar liquidity tightening. There are signs that risk-parity funds are in the grip of a...

This paper studies the role of narratives for macroeconomic fluctuations. Microfounding narratives as directed acyclic graphs, we show how exposure to different narratives can affect expectations in an otherwise-standard macroeconomic framework. We identify such competing narratives in news...

We explore the potential of different behavioral drivers for people to use cash when presented with digital payment alternatives in retail transactions. Behavioral finance traits in our study include the otherwise neglected emotional drivers. We conducted an online survey targeting university...

This paper investigates the impact of macroeconomic and monetary news on U.S. Government bond rate level and volatility. Specifically, it checks if these news affect differently interest rate level and volatility during "stable" and "unstable" periods. "Unstable" periods correspond to the...