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.
While there may be a number of ways to design interest-bearing securities that avoid the need for an issuer to collect interest when rates are below zero, the real challenge may be to choose a design that suits investors as well as issuers.
The April 2015 Empire State Manufacturing Survey, released today, points to continued weakness in New York’s manufacturing sector. The survey’s headline general business conditions index turned slightly negative for the first time since December, falling 8 points to -1.2 in a sign that the growth in manufacturing had paused.
Durham describes how and why “betting against beta” with government bonds might work. He finds that the magnitude of absolute returns using this trading strategy tends to rival gains on the S&P 500, and then describes three issues that “test” this strategy.
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.
To isolate the component of demand that arises solely from peer benchmarking, the authors study trading behavior by Colombian pension fund managers in the presence of a peer-based under-performance penalty known as the Minimum Return Guarantee.
By Sushant Acharya and Alvaro Pedraza, Staff Reports 727, May 2015
In most theories of financial intermediation, intermediaries diversify risk, transform maturity or liquidity, and screen or monitor borrowers. But in U.S. Treasury auctions, none of these rationales apply. The authors explore a new information aggregation model of intermediation to examine current policy questions, such as the optimal number of intermediaries, the effect of non-intermediated bids, and minimum bidding requirements.
By Nina Boyarchenko, David O. Lucca, and Laura Veldkamp, Staff Reports 726, April 2015
The authors study the effects of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) and find that the reform caused a permanent drop in the Chapter 7 bankruptcy rate, but resulted in a rise in the rate and persistence of insolvency, and a rise in the rate of foreclosure.
By Stefania Albanesi and Jaromir Nosal, Staff Reports 725, April 2015
The authors build a general equilibrium model with financial frictions and describe how the quality of overall investment deteriorates in response to monetary stimulus and how this outcome can impede the potential for monetary policy to stimulate the economy.
By Dong Beom Choi, Thomas M. Eisenbach, and Tanju Yorulmazer, Staff Reports 724, April 2015