Analyzing typical structure product (SP) by figuring out the underlying assets and pricing them, demonstrates a transfer of wealth from the investors to the issuers. We argue that many SPs currently available to retail investors are designed to exploit several behavioral biases including: loss...

We examine the performance of behavioral biases among professional investors in the case of structured products investment. We outline several key features embedded in various structured products and associate each with specific behavioral bias identified in the literature of decision theory. We...

We study a regulation that increased mutual funds' risk salience through name change. Using daily fund flow data and several identification strategies, we find that requiring certain fixed income mutual funds to affix an exclamation mark ("!") to their names caused a statistically and...

The institutional brokerage industry faces an ever-increasing pressure to lower trading costs, which has already driven down average commissions and shifted volume toward low-cost execution venues. However, traditional full-service brokers that bundle execution with services remain a force and...

Observed international diversification implies an investment home bias (IHB). Can bivariate preferences with a local domestic peer group rationalize the IHB? For example, it is argued that wishing to have a large correlation with the Standard and Poor's 500 stock index (S&P 500 stock index) may...