The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The Outreach and Education function engages, empowers and educates the Second District communities that the Bank serves, especially civic leaders, students, educators, small business owners, policymakers and the general public. It furthers the Bank's commitment to the region by listening to the communities we serve and leveraging our unique attributes to positively impact school and university programs, as well as analysis and research.
According to the latest Business Leaders Survey, the regional economy has reached an important milestone: Business conditions are widely seen as “back to normal” for the first time since the Great Recession.
In January 2014, the U.S. Treasury held its first auction of a two-year floating-rate note (FRN), which pays a fixed spread over the floating thirteen-week bill rate rather than a fixed coupon. The bloggers investigate the aftermath of this auction and highlight the important role played by dealers as intermediaries and by money market funds as ultimate investors.
By Ezechiel Copic, Luis Gonzalez, Caitlin Gorback, Blake Gwinn, and Ernst Schaumburg
Students in recent years have been paying more to attend college and earning less upon graduation—trends that have raised questions about whether a college education remains a good investment. But research from economists Jaison Abel and Richard Deitz finds that the benefits of college still tend to outweigh the costs.
Consistent with “risk parity” asset allocation, recent studies document “low-risk” trading strategies that exploit a persistently negative relation between Sharpe ratios and maturity along the U.S. Treasury term structure. Durham extends this evidence on betting against beta with government bonds in four ways.
By J. Benson Durham, Staff Reports 708, January 2015
The authors document the steady decline in the firm entry rate over the last thirty years and the gradual shift of employment from younger to older firms over the same period—developments that hold across industries and geography. Despite these trends, firms' lifecycle dynamics and their business cycle properties have remained virtually unchanged.
By Benjamin Pugsley and Ayşegül Şahin, Staff Reports 707, December 2014
The illiquidity of long-maturity options has made it difficult to study the term structures of option-spanning portfolios. Vogt proposes a new estimation and inference framework for these option-implied term structures that addresses long-maturity illiquidity.
Today’s complex bank holding companies are the best example of hybrid intermediaries, but Cetorelli argues that financial firms from the “nonbank” space can just as easily evolve into conglomerates with a similar organizational structure, thus acquiring the capability to engage in financial intermediation.
By Nicola Cetorelli, Staff Reports 705, December 2014