In Focus

  • Week InReview: December 9, 2016

    • Friday, December 9, 2016

    Things that make you say 'Hmm....' If I can't read the annual report, should I invest? A cautionary tale reminiscent of "if you have to ask you probably can't afford it." "We find that less readable annual reports are associated with less favorable credit ratings from S&P and Moody's and more frequent and larger magnitude disagreements between S&P and Moody's about the initial rating of a new bond. We also find evidence that less readable annual reports are associated with higher costs of debt financing. In terms of magnitude, we find that if a company improved its readability from the 75th to 50th percentile in our sample, then it would save approximately $440,000 annually in interest for a bond with a face value of $430 million, the average in our sample." An excerpt from Does Readability of Financial Disclosures Affect the Bond Market? in The CLS Blue Sky Blog

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  • Week InAdvance: December 5, 2016

    • Monday, December 5, 2016

    Mon 12/5 "Financial Crises: Shadow Banks, Short-term Debt, and Structural Issues" conference in DC. | Tue 12/6 Top SEC officials address accounting conference. | Wed 12/7 SEC panel to discuss board diversity. OCC risk & compliance workshops in Philly. House panel meets on unconventional monetary policy. | Thu 12/8 SEC panel to discuss 2017 investor protection priorities. House GSE panel meets. | Fri 12/9 MiFID II/Dodd-Frank conference in London.

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  • Week InReview: December 2, 2016

    • Friday, December 2, 2016

    "Zombanakis and his team came up with a solution: charging borrowers an interest rate recalculated every few months and funding the loan with a series of rolling deposits. The formula was simple. The banks in the syndicate would report their funding costs just ­before a loan-rollover date. The weighted average, rounded to the nearest eighth of a percentage point plus a spread for profit, became the price of the loan for the next period. Zombanakis called it the London interbank offered rate." An excerpt from Gavin Finch and Liam Vaughan's forthcoming Libor scandal book "The Fix" describing the 1969 invention of Libor by Manufacturers Hanover banker Minos Zombanakis as a way o make floating-rate syndicated loans

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