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- All HBS Web (198)
- Faculty Publications (87)
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- All HBS Web (198)
- Faculty Publications (87)
Dollar Funding and the Lending Behavior of Global Banks
A large share of dollar-denominated lending is done by non-U.S. banks, particularly European banks. We present a model in which such banks cut dollar lending more than euro lending in response to a shock to their credit quality. Because these banks rely on wholesale... View Details
- February 2008 (Revised March 2009)
- Case
Primus, 2007
Primus is a credit derivative product company. How will they weather the credit crisis of 2007?
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Keywords:
Financial Crisis;
Credit;
Credit Derivatives and Swaps;
Financial Markets;
Financial Services Industry
Bergstresser, Daniel B. "Primus, 2007." Harvard Business School Case 208-099, February 2008. (Revised March 2009.)
- January 1987 (Revised November 1991)
- Case
R.J. Reynolds International Financing
By: W. Carl Kester and William B. Allen
Reynolds must source a substantial portion of the financing of its Nabisco acquisition in offshore bond markets. Morgan Guaranty has proposed a yen/dollar dual currency Eurobond that could be hedged into dollars. This structure is compared to Eurodollar Bonds, Euroyen...
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Keywords:
Acquisition;
Capital Markets;
Currency Exchange Rate;
Credit Derivatives and Swaps;
Bonds;
Financing and Loans
Kester, W. Carl, and William B. Allen. "R.J. Reynolds International Financing." Harvard Business School Case 287-057, January 1987. (Revised November 1991.)
- 2024
- Working Paper
Creditor-on-Creditor Violence and Secured Debt Dynamics
By: Samuel Antill, Neng Wang and Zhaoli Jiang
Anticipating a borrower's default, secured lenders have recently used aggressive legal tactics to extract value from other secured lenders. We model the implications of this new "creditor-on-creditor violence'' trend. In our novel continuous-time capital structure...
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Antill, Samuel, Neng Wang, and Zhaoli Jiang. "Creditor-on-Creditor Violence and Secured Debt Dynamics." Working Paper, May 2024.
- February 1994 (Revised July 2008)
- Case
Banc One Corporation: Asset and Liability Management
By: Benjamin C. Esty, Peter Tufano and Jon Headley
Banc One's share price has been falling recently due to analyst and investor concern over the bank's heavy use of interest rate derivatives. Dick Lodge, chief investment officer in charge of the bank's investment and derivative portfolio, must recommend to the CEO a...
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Keywords:
Credit Derivatives and Swaps;
Financial Management;
Interest Rates;
Investment Portfolio;
Governance Controls;
Risk Management;
Banking Industry
Esty, Benjamin C., Peter Tufano, and Jon Headley. "Banc One Corporation: Asset and Liability Management." Harvard Business School Case 294-079, February 1994. (Revised July 2008.)
- July 2021 (Revised December 2021)
- Case
Pershing Square's Pandemic Trade (A)
By: Emil N. Siriwardane, Luis M. Viceira, Dean Xu and Lucas Baker
This case explores the decision that Bill Ackman, CEO and founder of the hedge fund Pershing Square Capital, was considering in late February 2020 about hedging the exposure of the fund’s portfolio from the potential financial fallout ensuing from an extreme event like...
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Keywords:
Health Pandemics;
Financial Liquidity;
Cost Management;
Decision Choices and Conditions;
Risk Management
Siriwardane, Emil N., Luis M. Viceira, Dean Xu, and Lucas Baker. "Pershing Square's Pandemic Trade (A)." Harvard Business School Case 222-007, July 2021. (Revised December 2021.)
- 09 Apr 2009
- Working Paper Summaries
The Economics of Structured Finance
- 15 Jan 2019
- First Look
New Research and Ideas, January 15, 2019
Business School Case 719-417 National Australia Bank: Looking Out for the Customer After learning that most defaults were due to health, job, or marital problems, National Australia Bank revised its debt collection department to shift...
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Keywords:
Dina Gerdeman
- August 2015
- Article
Poultry in Motion: A Study of International Trade Finance Practices
By: Pol Antràs and C. Fritz Foley
This paper analyzes the financing terms that support international trade and sheds light on how these terms shape the impact of economic shocks on trade. Analysis of transaction-level data from a U.S.-based exporter of frozen and refrigerated food products, primarily...
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Antràs, Pol, and C. Fritz Foley. "Poultry in Motion: A Study of International Trade Finance Practices." Journal of Political Economy 123, no. 4 (August 2015): 853–901. (Revised May 2014. Online Appendix.)
- 21 Jun 2011
- First Look
First Look: June 21
telecommunications to tobacco and soft drinks. The dangers of excessive market concentration are greater in finance, however, because of the systemic importance of credit to the economy and the now widely held belief that governments must...
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Keywords:
Sean Silverthorne
- 2016
- Working Paper
Financial Regulation in a Quantitative Model of the Modern Banking System
By: Juliane Begenau and Tim Landvoigt
How does the shadow banking system respond to changes in the capital regulation of commercial banks? This paper builds a quantitative general equilibrium model with commercial banks and shadow banks to study the unintended consequences of capital requirements. A key...
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Begenau, Juliane, and Tim Landvoigt. "Financial Regulation in a Quantitative Model of the Modern Banking System." Harvard Business School Working Paper, No. 16-140, June 2016. (Revised July 2016.)
- October 2020
- Case
HOPE and Transformational Lending: Netflix Invests in Black Led Banks
By: John D. Macomber and Janice Broome Brooks
Following the killing of George Floyd on Memorial Day in 2020, the large US corporation Netflix elected to make a "transformational deposit" of $10 million into Hope Credit Union (HCU), a small Black led community development finance institution (CDFI) based in...
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- April 1998
- Case
Citibank Hong Kong--Capital Arbitrage in the Emerging Markets
Describes how a credit derivative may be used to structure a profitable transaction between a bank and its client. Design and risk management issues are discussed in the context of this new class of derivative security.
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Das, Sanjiv R. "Citibank Hong Kong--Capital Arbitrage in the Emerging Markets." Harvard Business School Case 298-029, April 1998.
- 07 Aug 2012
- Working Paper Summaries
Financial vs. Strategic Buyers
- 13 Nov 2006
- Working Paper Summaries
A New Framework for Analyzing and Managing Macrofinancial Risks of An Economy
- September 2007
- Case
Tetra Pak Argentina
By: Tarun Khanna, Krishna G. Palepu and Gustavo A. Herrero
Deals with the hands-on management of a difficult situation facing the subsidiary of a multinational corporation (Tetra Pak) in a developing country (Argentina). The situation arises from a major economic, social, and institutional breakdown that jeopardizes the...
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Keywords:
Developing Countries and Economies;
Financial Crisis;
Currency Exchange Rate;
Sovereign Finance;
Multinational Firms and Management;
Crisis Management;
Business and Government Relations;
Argentina
Khanna, Tarun, Krishna G. Palepu, and Gustavo A. Herrero. "Tetra Pak Argentina." Harvard Business School Case 708-402, September 2007.
- 21 Jul 2009
- First Look
First Look: July 21
for making CBA more effective, rather than eliminating CBA as a decision-making tool. Download the paper: http://www.hbs.edu/research/pdf/10-001.pdf Reputation and Competition: Evidence from the Credit Rating Industry (revised) Authors:Bo...
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Keywords:
Martha Lagace
- March 2005 (Revised December 2005)
- Case
Morgan Stanley and TRAC-X: The Battle for the CDS Indexes Market
Morgan Stanley's credit derivatives business, specifically its collateralized debt obligation (CDO) business, has been hugely successful. One of its leading offerings is the TRAC-X product, jointly created and marketed by Morgan Stanley and JP Morgan. However, a new...
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Keywords:
Credit Derivatives and Swaps;
Product;
Competition;
Capital Markets;
Financial Services Industry
Chacko, George C., Vincent Dessain, Anders Sjoman, Leonie Maruani, and Kate Hao. "Morgan Stanley and TRAC-X: The Battle for the CDS Indexes Market." Harvard Business School Case 205-075, March 2005. (Revised December 2005.)
- January 2008
- Background Note
Collateralized Debt Obligations (CDOs)
By: Joshua Coval and Erik Stafford
This lesson integrated Merton's (1974) contingent claims model of debt and equity claims with the CAPM, which allows us to examine the risks and pricing of credit portfolios and the derivative claims issued against them. In particular, this model is used to make...
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Keywords:
Decision Choices and Conditions;
Borrowing and Debt;
Credit Derivatives and Swaps;
Investment Portfolio;
Risk Management
Coval, Joshua, and Erik Stafford. "Collateralized Debt Obligations (CDOs)." Harvard Business School Background Note 208-113, January 2008.
- 20 Nov 2018
- First Look
New Research and Ideas, November 20, 2018
that adjustments grow more stringent and accurate in the months leading up to default and better predict lender default recovery rates. Download working paper:...
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Keywords:
Dina Gerdeman