Yale School of Management

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Federal Reserve Announces Changes to Main Street Lending Program

May 1, 2020
On April 30, the Federal Reserve Board announced updates to the Main Street Lending Program, after receiving more than 2,200 comments from individuals, businesses, and nonprofits on the initial terms of the program announced on April 9. Major changes include creating a third facility that accepts riskier borrowers, lowering the minimum loan size, lowering the interest rate, and expanding the pool of eligible borrowers. Continue reading “Federal Reserve Announces Changes to Main Street Lending Program”

First-Year Students Look Back at their Favorite On-Campus Events of the Year

May 1, 2020
While the current pandemic has meant that many of these events convened virtually this spring, the spirit of community persists for SOM students. And it was in that spirit that first-year student life chair Stephanie Wayne ’21 reached out to us recently, wanting to share her and her classmates’ reflections on their favorite events with admitted and prospective students.  Continue reading “First-Year Students Look Back at their Favorite On-Campus Events of the Year”

Conventional Monetary Policy and the Zero-Lower-Bound

April 30, 2020
Central banks across the world have eased monetary policy to facilitate smooth market functioning during the Covid-19 crisis. Interest rate cuts are their primary policy tool. Global interest rates are now at historic lows, with 14 of the 38 central banks in a Bank for International Settlements (BIS) database setting their nominal key policy rates at or below 0.25 percent; three are below 0. Continue reading “Conventional Monetary Policy and the Zero-Lower-Bound”

Financial History Repeats Itself. The South Sea Bubble: 22 April 1720

By: Electra Ferriello April 30, 2020
22 April

This year, the ICF is looking back at the South Sea Bubble of 1720 which was the first global financial bubble that occurred 300 years ago in Paris, London and the Netherlands. On our South Sea Bubble 1720 project website, we share newspaper clippings from the Leydse Courant, a Dutch newspaper...

Continue reading “Financial History Repeats Itself. The South Sea Bubble: 22 April 1720”

News in Systemic Risk: Thursday, April 30, 2020 (10 a.m. ET)

April 30, 2020
MAS and Financial Industry Provide Additional Support for Individuals (Monetary Authority of Singapore) Monetary policy decisions (European Central Bank) Which city economies did COVID-19 damage first? (Alan Barube; Brookings Institution) A risk-centric perspective on the central banks’ Covid-19 policy response (Ricardo Caballero, Alp Simsek; VoxEU) Is This a Liquidity Crisis or a Solvency Crisis? It Matters to Fed (Greg Ip; Wall Street Journal) The EU recovery fund: An opportunity for change (Massimo Motta, Martin Peitz ; VoxEU) Continue reading “News in Systemic Risk: Thursday, April 30, 2020 (10 a.m. ET)”

News in Systemic Risk: Wednesday, April 29, 2020 (10 a.m. ET)

April 29, 2020
Public guarantees for bank lending in response to the Covid-19 pandemic (Patrizia Baudino; Bank of International Settlements) Maturity, seniority and size: Make sure the ESM’s pandemic crisis support is fit for purpose! (Giancarlo Corsetti, Aitor Erce; VoxEU) The 1918 influenza did not kill the US economy (Efraim Benmelech, Carola Frydman; VoxEU) Bias against private sector slows China's recovery from COVID-19 (Tianlei Huang, Nicholas R. Lardy ; Peterson Institute for International Economics) Stimulus checks need to arrive faster so Americans can get all the coronavirus money Washington has promised (Francis X. Suarez, Bibi Hidalgo, and Aaron Klein; Brookings Institution) Fed Expected to Pledge Aggressive Action as Economic Distress Worsens (Nick Timiraos; Wall Street Journal) After Firing Its Bazooka, ECB Could Reload to Fight Coronavirus (Tom Fairless; Wall Street Journal) Continue reading “News in Systemic Risk: Wednesday, April 29, 2020 (10 a.m. ET)”

FHFA Relaxes Standards for GSE Mortgage Servicers

April 29, 2020
On April 21, the Federal Housing Finance Agency (FHFA) announced that it was changing standards for mortgage servicers in an effort to reduce burdens brought on by drastic increases in mortgage nonpayment. Quickly following, on April 22, the FHFA announced that Fannie Mae and Freddie Mac would purchase some mortgages in forbearance due to COVID-19. Continue reading “FHFA Relaxes Standards for GSE Mortgage Servicers”

IFC Provides $8 Billion in Fast-Track Financing to Private Sector

April 29, 2020
The International Finance Corporation (IFC) will be providing fast-track financing of $8 billion to support companies impacted by the COVID-19 pandemic. On March 3, the World Bank Group approved $6 billion in fast-track financing through the IFC. It approved an additional $2 billion on March 17. Continue reading “IFC Provides $8 Billion in Fast-Track Financing to Private Sector”

News in Systemic Risk: Tuesday, April 28, 2020 (10 a.m. ET)

April 28, 2020
Covid-19 and corporate sector liquidity (Ryan Niladri Banerjee, Anamaria Illes, Enisse Kharroubi and José María Serena Garralda; Bank of International Settlements) The Federal Reserve Is Changing What It Means to Be a Central Bank (Nick Timiraos and Jon Hilsenrath; Wall Street Journal) World Bank pays out after triggering pandemic bonds (CentralBanking) The next COVID-19 relief bill must include massive aid to states, especially the hardest-hit areas (Mark Muro  ; Brookings Institution) Needed: Budgeting tools to address the fiscal aftermath of stimulus spending (Stuart M. Butler and Timothy Higashi; Brookings Institution) Brakes or bans: Protecting financial markets during a pandemic (Laura Kodres; VoxEU) Continue reading “News in Systemic Risk: Tuesday, April 28, 2020 (10 a.m. ET)”

Federal Reserve Announces Changes to Main Street Lending Program

May 1, 2020
On April 30, the Federal Reserve Board announced updates to the Main Street Lending Program, after receiving more than 2,200 comments from individuals, businesses, and nonprofits on the initial terms of the program announced on April 9. Major changes include creating a third facility that accepts riskier borrowers, lowering the minimum loan size, lowering the interest rate, and expanding the pool of eligible borrowers. Continue reading “Federal Reserve Announces Changes to Main Street Lending Program”

First-Year Students Look Back at their Favorite On-Campus Events of the Year

May 1, 2020
While the current pandemic has meant that many of these events convened virtually this spring, the spirit of community persists for SOM students. And it was in that spirit that first-year student life chair Stephanie Wayne ’21 reached out to us recently, wanting to share her and her classmates’ reflections on their favorite events with admitted and prospective students.  Continue reading “First-Year Students Look Back at their Favorite On-Campus Events of the Year”

Conventional Monetary Policy and the Zero-Lower-Bound

April 30, 2020
Central banks across the world have eased monetary policy to facilitate smooth market functioning during the Covid-19 crisis. Interest rate cuts are their primary policy tool. Global interest rates are now at historic lows, with 14 of the 38 central banks in a Bank for International Settlements (BIS) database setting their nominal key policy rates at or below 0.25 percent; three are below 0. Continue reading “Conventional Monetary Policy and the Zero-Lower-Bound”

Financial History Repeats Itself. The South Sea Bubble: 22 April 1720

By: Electra Ferriello April 30, 2020
22 April

This year, the ICF is looking back at the South Sea Bubble of 1720 which was the first global financial bubble that occurred 300 years ago in Paris, London and the Netherlands. On our South Sea Bubble 1720 project website, we share newspaper clippings from the Leydse Courant, a Dutch newspaper...

Continue reading “Financial History Repeats Itself. The South Sea Bubble: 22 April 1720”

News in Systemic Risk: Thursday, April 30, 2020 (10 a.m. ET)

April 30, 2020
MAS and Financial Industry Provide Additional Support for Individuals (Monetary Authority of Singapore) Monetary policy decisions (European Central Bank) Which city economies did COVID-19 damage first? (Alan Barube; Brookings Institution) A risk-centric perspective on the central banks’ Covid-19 policy response (Ricardo Caballero, Alp Simsek; VoxEU) Is This a Liquidity Crisis or a Solvency Crisis? It Matters to Fed (Greg Ip; Wall Street Journal) The EU recovery fund: An opportunity for change (Massimo Motta, Martin Peitz ; VoxEU) Continue reading “News in Systemic Risk: Thursday, April 30, 2020 (10 a.m. ET)”

News in Systemic Risk: Wednesday, April 29, 2020 (10 a.m. ET)

April 29, 2020
Public guarantees for bank lending in response to the Covid-19 pandemic (Patrizia Baudino; Bank of International Settlements) Maturity, seniority and size: Make sure the ESM’s pandemic crisis support is fit for purpose! (Giancarlo Corsetti, Aitor Erce; VoxEU) The 1918 influenza did not kill the US economy (Efraim Benmelech, Carola Frydman; VoxEU) Bias against private sector slows China's recovery from COVID-19 (Tianlei Huang, Nicholas R. Lardy ; Peterson Institute for International Economics) Stimulus checks need to arrive faster so Americans can get all the coronavirus money Washington has promised (Francis X. Suarez, Bibi Hidalgo, and Aaron Klein; Brookings Institution) Fed Expected to Pledge Aggressive Action as Economic Distress Worsens (Nick Timiraos; Wall Street Journal) After Firing Its Bazooka, ECB Could Reload to Fight Coronavirus (Tom Fairless; Wall Street Journal) Continue reading “News in Systemic Risk: Wednesday, April 29, 2020 (10 a.m. ET)”

FHFA Relaxes Standards for GSE Mortgage Servicers

April 29, 2020
On April 21, the Federal Housing Finance Agency (FHFA) announced that it was changing standards for mortgage servicers in an effort to reduce burdens brought on by drastic increases in mortgage nonpayment. Quickly following, on April 22, the FHFA announced that Fannie Mae and Freddie Mac would purchase some mortgages in forbearance due to COVID-19. Continue reading “FHFA Relaxes Standards for GSE Mortgage Servicers”

IFC Provides $8 Billion in Fast-Track Financing to Private Sector

April 29, 2020
The International Finance Corporation (IFC) will be providing fast-track financing of $8 billion to support companies impacted by the COVID-19 pandemic. On March 3, the World Bank Group approved $6 billion in fast-track financing through the IFC. It approved an additional $2 billion on March 17. Continue reading “IFC Provides $8 Billion in Fast-Track Financing to Private Sector”

News in Systemic Risk: Tuesday, April 28, 2020 (10 a.m. ET)

April 28, 2020
Covid-19 and corporate sector liquidity (Ryan Niladri Banerjee, Anamaria Illes, Enisse Kharroubi and José María Serena Garralda; Bank of International Settlements) The Federal Reserve Is Changing What It Means to Be a Central Bank (Nick Timiraos and Jon Hilsenrath; Wall Street Journal) World Bank pays out after triggering pandemic bonds (CentralBanking) The next COVID-19 relief bill must include massive aid to states, especially the hardest-hit areas (Mark Muro  ; Brookings Institution) Needed: Budgeting tools to address the fiscal aftermath of stimulus spending (Stuart M. Butler and Timothy Higashi; Brookings Institution) Brakes or bans: Protecting financial markets during a pandemic (Laura Kodres; VoxEU) Continue reading “News in Systemic Risk: Tuesday, April 28, 2020 (10 a.m. ET)”