Private equity beyond the target: How buyouts reshape supply chains
The importance of private equity for euro area firms is increasing, with annual growth rates in assets under management exceeding 10%. Private equity buyouts affect
Taming original sin redux: The role of benchmark-driven flows
Emerging market capital flows remain highly sensitive to global shocks. This column analyses foreign investors in emerging market local-currency sovereign bonds depending on whether they
Ratings, debt, and deficits: An exploration
What matters more for sovereign credit ratings – today’s debt or tomorrow’s deficits? This column explores how ratings weigh the two and finds that ratings
Navigating geoeconomic risk in the US stock market
Geoeconomic risk has become a first-order concern for investors. This column shows that domestic US stocks expose investors to substantial geoeconomic risk through firms’ global
Training novices to think in the age of large language models
Whether teaching a cognitive skill remains valuable in this era of AI is a crucial question in education and for firms. This column reports on
Building resilience to global financial shocks in emerging markets
Emerging markets are vulnerable to sudden shifts in investor sentiment, which can lead to pressure on exchange rates and financing conditions. Using panel evidence from
Anatomy of a rise: Monetary policy and the post-Covid surge in long-term interest rates
The sharp rise in long-term interest rates since 2020 is difficult to explain from slow-moving fundamentals. This column shows that narrow windows around nonfarm payroll
How currency hedging moves exchange rates
Foreign investors’ growing holdings of dollar-denominated bonds have created a large demand to hedge dollar risk. Using outstanding FX forward and swap positions for seven
After Credit Suisse, markets find bail-in less credible
When Credit Suisse failed in March 2023, Swiss authorities, against market expectations, set aside the resolution plan and arranged a UBS takeover backed by public
Oil surges, stocks tumble as Trump declares Iran MOU ‘over’
Samsung slides for a second session amid earnings worries. Oil surged by more than 5% on Wednesday and global stocks and bond prices tumbled, as
