Yale School of Management

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News in Systemic Risk: Wednesday, June 17, 2020 (10 a.m. ET)

June 17, 2020
A financial system to support the recovery (Charles Randell; UK Financial Conduct Authority) Access to finance for small and medium-sized enterprises since the financial crisis: evidence from survey data (Katarzyna Bańkowska, Annalisa Ferrando, Juan Angel Garcia; European Central Bank) Short-time work schemes and their effects on wages and disposable income (António Dias da Silva, Maarten Dossche, Ferdinand Dreher, Claudia Foroni, Gerrit Koester; European Central Bank) The fiscal response to the Covid-19 crisis in advanced and emerging market economies (Enrique Alberola-Ila, Yavuz Arslan, Gong Cheng, Richhild Moessner; Bank of International Settlements) Central bank independence and systemic risk (Alin Marius Andrieș, Anca Maria Podpiera, Nicu Sprincean; Bank of Finland) The Looming Bank Collapse (Frank Partnoy; The Atlantic) Continue reading “News in Systemic Risk: Wednesday, June 17, 2020 (10 a.m. ET)”

COVID-19 and Insurance (3 of 3): Capital Conservation and Countercyclical Regulation

June 17, 2020
Insurance supervisors around the world outside the U.S. have urged companies they supervise to conserve capital during the COVID-19 crisis by limiting payouts to shareholders and bonuses to executives.  At the same time, many supervisors have sought to help insurers avoid procyclical behavior by mitigating the impact of volatile market swings on the value of insurance company assets and, in turn, on measures of their capital adequacy.  Continue reading “COVID-19 and Insurance (3 of 3): Capital Conservation and Countercyclical Regulation”

COVID-19 and Insurance (2 of 3): Operational Regulatory Relief

June 16, 2020
Many insurance supervisors have provided temporary relief to help companies manage during the COVID-19 crisis. Most of this relief comes in the form of extended deadlines for submitting various reports or provisions that make remote compliance easier. Regulators have also suspended supervisory activities and loosened accounting rules. Continue reading “COVID-19 and Insurance (2 of 3): Operational Regulatory Relief”

Federal Reserve Expands Support to Corporate Bond Markets Again

June 16, 2020
On June 15, the Federal Reserve (Fed) updated and expanded the Secondary Market Corporate Credit Facility (SMCCF), one of the Fed’s corporate bond-buying programs, to support market liquidity and the availability of credit for large employers. The recent change allows the facility to buy U.S. corporate bond portfolios that track a broad market index. Continue reading “Federal Reserve Expands Support to Corporate Bond Markets Again”

News in Systemic Risk: Tuesday, June 16, 2020 (10 a.m. ET)

June 16, 2020
Treasury Market Liquidity and the Federal Reserve during the COVID-19 Pandemic (Michael Fleming; Federal Reserve Bank of New York)  Kurzarbeit: Germany’s Short-Time Work Benefit (International Monetary Fund)  Can Forecast Errors Predict Financial Crises? Exploring the Properties of a New Multivariate Credit Gap (Elena Afanasyeva; Federal Reserve Board of Governors)  EMEs and COVID-19: Shutting Down in a World of Informal and Tiny Firms (Laura Alfaro, Oscar Becerra, Marcela Eslava; National Bureau of Economic Research)  Governments May Revisit Postwar Playbook as They Tackle Huge Debts (Paul Hannon; Wall Street Journal)  Debt investors bet on emerging markets as ‘QE’ begins to travel (Colby Smith; Financial Times)  Fed Adapts as Congress Urges More Credit Risk On Corporate Loans (Saleha Mohsin, Craig Torres; Bloomberg) Continue reading “News in Systemic Risk: Tuesday, June 16, 2020 (10 a.m. ET)”

COVID-19 and Insurance (1 of 3): Helping Individuals and Businesses

June 15, 2020
Insurance companies face unusual challenges during the COVID-19 crisis. This blog describes efforts by companies and their supervisors to: Reduce financial burdens on insurance customers, for example, by allowing them to defer premium payments.  Resolve the controversy over whether existing insurance coverage extends to businesses that have lost revenue during the crisis. Continue reading “COVID-19 and Insurance (1 of 3): Helping Individuals and Businesses”

News in Systemic Risk: Wednesday, June 17, 2020 (10 a.m. ET)

June 17, 2020
A financial system to support the recovery (Charles Randell; UK Financial Conduct Authority) Access to finance for small and medium-sized enterprises since the financial crisis: evidence from survey data (Katarzyna Bańkowska, Annalisa Ferrando, Juan Angel Garcia; European Central Bank) Short-time work schemes and their effects on wages and disposable income (António Dias da Silva, Maarten Dossche, Ferdinand Dreher, Claudia Foroni, Gerrit Koester; European Central Bank) The fiscal response to the Covid-19 crisis in advanced and emerging market economies (Enrique Alberola-Ila, Yavuz Arslan, Gong Cheng, Richhild Moessner; Bank of International Settlements) Central bank independence and systemic risk (Alin Marius Andrieș, Anca Maria Podpiera, Nicu Sprincean; Bank of Finland) The Looming Bank Collapse (Frank Partnoy; The Atlantic) Continue reading “News in Systemic Risk: Wednesday, June 17, 2020 (10 a.m. ET)”

COVID-19 and Insurance (3 of 3): Capital Conservation and Countercyclical Regulation

June 17, 2020
Insurance supervisors around the world outside the U.S. have urged companies they supervise to conserve capital during the COVID-19 crisis by limiting payouts to shareholders and bonuses to executives.  At the same time, many supervisors have sought to help insurers avoid procyclical behavior by mitigating the impact of volatile market swings on the value of insurance company assets and, in turn, on measures of their capital adequacy.  Continue reading “COVID-19 and Insurance (3 of 3): Capital Conservation and Countercyclical Regulation”

COVID-19 and Insurance (2 of 3): Operational Regulatory Relief

June 16, 2020
Many insurance supervisors have provided temporary relief to help companies manage during the COVID-19 crisis. Most of this relief comes in the form of extended deadlines for submitting various reports or provisions that make remote compliance easier. Regulators have also suspended supervisory activities and loosened accounting rules. Continue reading “COVID-19 and Insurance (2 of 3): Operational Regulatory Relief”

Federal Reserve Expands Support to Corporate Bond Markets Again

June 16, 2020
On June 15, the Federal Reserve (Fed) updated and expanded the Secondary Market Corporate Credit Facility (SMCCF), one of the Fed’s corporate bond-buying programs, to support market liquidity and the availability of credit for large employers. The recent change allows the facility to buy U.S. corporate bond portfolios that track a broad market index. Continue reading “Federal Reserve Expands Support to Corporate Bond Markets Again”

News in Systemic Risk: Tuesday, June 16, 2020 (10 a.m. ET)

June 16, 2020
Treasury Market Liquidity and the Federal Reserve during the COVID-19 Pandemic (Michael Fleming; Federal Reserve Bank of New York)  Kurzarbeit: Germany’s Short-Time Work Benefit (International Monetary Fund)  Can Forecast Errors Predict Financial Crises? Exploring the Properties of a New Multivariate Credit Gap (Elena Afanasyeva; Federal Reserve Board of Governors)  EMEs and COVID-19: Shutting Down in a World of Informal and Tiny Firms (Laura Alfaro, Oscar Becerra, Marcela Eslava; National Bureau of Economic Research)  Governments May Revisit Postwar Playbook as They Tackle Huge Debts (Paul Hannon; Wall Street Journal)  Debt investors bet on emerging markets as ‘QE’ begins to travel (Colby Smith; Financial Times)  Fed Adapts as Congress Urges More Credit Risk On Corporate Loans (Saleha Mohsin, Craig Torres; Bloomberg) Continue reading “News in Systemic Risk: Tuesday, June 16, 2020 (10 a.m. ET)”

COVID-19 and Insurance (1 of 3): Helping Individuals and Businesses

June 15, 2020
Insurance companies face unusual challenges during the COVID-19 crisis. This blog describes efforts by companies and their supervisors to: Reduce financial burdens on insurance customers, for example, by allowing them to defer premium payments.  Resolve the controversy over whether existing insurance coverage extends to businesses that have lost revenue during the crisis. Continue reading “COVID-19 and Insurance (1 of 3): Helping Individuals and Businesses”