Yale School of Management

Content Tagged as Finance

What Is Factor-Based Investing?

Asset classes have long been the building blocks of investment portfolios, but when apparently uncorrelated investments moved in sync during the financial crisis, it raised fundamental questions about whether diversified portfolios actually were diversified. Eugene Podkaminer ’01, vice president of capital markets research at Callan Associates, discusses whether there is a better way to understand the deep forces driving these results.

What Does It Take to Survive on Wall Street?

Any financial institution that is going to last for decades will have to survive a crisis or two—most likely by adapting and innovating, perhaps by leaving behind chunks of its old identity. Yale Insights spoke with James Gorman, chairman and CEO of Morgan Stanley, one of two major investment banks to survive the 2008 financial crisis, about how the firm has managed to refashion itself and prepare for the future.

How Risky Is That Hedge Fund?

Hedge funds are risky. But getting beyond that bromide and evaluating the prospects of a particular fund means understanding everything from internal operations to investors’ incentives to counterparty and market conditions. David Belmont ’92, chief risk officer of Commonfund, gives a tour of the inner workings of hedge fund risk.

In Search of a Stable Electronic Currency

In a New York Times op-ed, Professor Robert J. Shiller writes that Bitcoin is a speculative bubble with a doubtful future, but its legacy should be that we move toward a system of stable economic units of measurement backed by sophisticated forms of electronic payment.

What’s the Future of Private Equity?

The private equity industry has evolved rapidly over its relatively short life span. What’s likely to happen over the next five to ten years? Industry experts consider whether PE will continue to expand globally and how the largest firms will find funding.

Can Finance Do Good?

The concluding discussion of the three-day Business + Society conference was titled “Finance in Society,” and dealt with both the tension and the possibility in that relationship.

What Should Finance Do for Society?

The financial crisis of 2008 is a looming figure in current economic thinking. The global economy is still slowly recovering from the shock, and policymakers and academics continue to discuss the structural changes needed to prevent a recurrence. The stress of the last half decade has made two things very clear: A productive and innovative financial system is essential to the broader economy, but financial innovations made irresponsibly—without consideration of systemic risk and other impacts on society—can wreak havoc.

Can We Prevent Future Crises?

Was the 2008 financial crisis a one-time event or the first example of a new pattern? Professor Gary Gorton argues that the history of banking shows that there’s a real risk of future upheaval in financial markets.