Experience Stern | News & Events

Excerpt from PBS NewsHour -- "The fundamental innovation is in tapping into underutilized capacity: repurposing what used to be residential real estate and sort of converting it into a new form of mixed-use real estate where for some of the time it is short-term accommodation, and for the rest of the time it’s residential."

Excerpt from Mumbai Mirror -- "Prof Subrahmanyam and his colleagues found that shockingly 26 per cent of mergers and buyouts were accompanied by evidence of insider trading. Using sophisticated statistics, they showed that the chance of such abnormal buying, happening just by chance, was 3 in a trillion! The record of actual investigation and prosecution for insider trading (like the Rajat Gupta case) is woefully short of 26 per cent. Even that takes more than two years to secure conviction (considered fast track by US standards). So this problem is acute. But Prof Subrahmanyam and his team seem to have put fresh tools in the hands of SEC to go after the rogues."

Excerpt from Bloomberg View -- "Here we should turn to the research of New York University economist Paul Romer, one of the most influential theorists of economic growth. Much of Romer's research is about 'excludability,' or the degree to which companies can stop other companies from learning their secrets. Excludability means that new technologies don't necessarily flow from one company to another. Romer has shown that excludability is, at least in theory, very important to economic growth."

Excerpt from The New York Times -- "Microsoft’s 'grand scheme was to have a single platform that ran on PCs, laptops, tablets and phones, and to be able to sell applications that run Windows,' said Nicholas Economides, an economics professor at the Stern School of Business at New York University who specializes in network economics and electronic commerce. 'That failed.'"

Excerpt from The Globalist -- "Presumably, the reason for Greece to move closer to Russia would be to get access to loans. Despite being the smallest of the BRICs, the Russian state does have wealth due to its abundant natural resources (primarily oil and gas). However, while Mr. Putin might ordinarily love the idea of offering financing galore to fix Greece’s problems, Russia has troubles of its own. Its economy is generally expected to shrink at least 3% in 2015, on the back of falling oil prices and economic sanctions."

Excerpt from CNNMoney -- "The circuit breakers are in place on some assets in the U.S. and appear to be in place in China now as well. It gives a short cool off period for traders. But it's 'of limited effectiveness,' argues Sylla, 'because what's going to happen overnight that would change people's attitudes?'"

Excerpt from Politico -- "'There’s nothing in the code that says you can’t stay in business, but the code also says that a company should not be permitted to emerge from bankruptcy if there is a substantial likelihood they will need to file again or will need restructuring,' says Altman. That makes Trump 'the great Houdini,' he says. 'No matter how poorly the companies perform he always manages to resurface and do it again.'"

Excerpt from Bloomberg -- "Well, in the case of the Fed, we're beginning to see the rate normalization starting sometime this fall, but if you look around the world between the DOJ, ECB and other central banks, we're still in totally unconventional monetary policy: zero-policy rates, negative policy rates, quantitative easing, credit easing, forward guidance, and you name it."

Excerpt from Investment Magazine -- "According to Brown, a perfect storm which started in the GFC led to a misunderstanding of the value proposition of hedge funds. Returns in recent years in hedge fund strategies have been poor compared to the market, but he emphasised they are meant to be uncorrelated, and a diversified hedge fund strategy still made sense for intuitional investors. 'People worry about fees, people worry about expenses, but after all that, after they are all accounted for, they remain a value proposition. This was true before the crisis and they remain a value proposition after,' Brown said."

Excerpt from Bloomberg -- "[In] the next quarter, if Twitter shows negative user growth, which we haven't seen across any social media platform that's still around, you could have a chill that could set off an incredible decrease in valuations, not only across social media, but across the market. I think Twitter is about to play a more important role in the markets than people think."

Excerpt from Fox Business -- "The first principal of investment is diversifying your portfolio. You cannot put all your eggs into one basket. … there are a huge amount of investment opportunities around the world. For example, this year Japan and Europe have done much better than the United States…"

Excerpt from Project Syndicate -- "As China’s markets expand – the capitalization of the Shanghai and Shenzhen markets is on the order of $11 trillion – they are increasingly outstripping policymakers’ capacity to manage prices and valuations. The only practical way forward is for the Chinese authorities to focus on regulatory and institutional development, while following through on their commitment to allow markets to play the decisive role in allocating resources."

Excerpt from BusinessBecause -- "'Companies now need marketing managers who are comfortable with data analytics,' said Anindya Ghose, professor of marketing at NYU Stern School of Business."

Excerpt from Australian Banking & Finance -- "'Although the hedge funds' big selling feature was that was that their strategies were uncorrelated with the market, the truth is their risk profile is half that of the S&P500 so hedge fund managers have underperformed.'  So systemic risk is not a issue with hedge funds, Brown concluded."

Excerpt from India Education Diary -- "'While we, at NYU Stern, understand the markets and institutions in developed economies to an extent, we need to do much more work to understand more fully the markets and institutions in emerging markets, such as India. The NSE-NYU Stern partnership provides a network of academics interested in studying the Indian financial markets,' said Professor Viral Acharya of NYU Stern."

The National Stock Exchange (NSE), India’s leading stock exchange, and New York University Stern School of Business (NYU Stern), one of the world’s premier research and teaching institutions, began their third annual ‘Indian Financial Markets Conference 2015’ today in Mumbai, India.

Excerpt from Project Syndicate -- "Given that this strategy can be applied to stocks, bonds, currencies, and many other asset classes, smart beta could be the future of asset management. Whether one is investing in normal or abnormal times, applying a scientific, low-cost approach to get a basket with a higher-than-average share of good apples does seem like a sensible approach."

Excerpt from ValueWalk -- "'It is hard to say, based on the results, whether the activist investor is doing anything beneficial for the company or whether the activist investor is just a good stock picker,' says Yakov Amihud, a finance professor at New York University's Stern School of Business."

Excerpt from Marketplace -- "'China is attempting to move from an investment-driven to a consumer-driven economy,' says Robert Whitelaw, professor of finance at NYU's Stern School of Business. 'And it’s not easy to do, because it has been investment-driven for so long.'"

Excerpt from Financial Times -- "Commentary on topical issues is grounded in realpolitik as much as economic analysis. He believes that Greece leaving the euro would be 'catastrophic' for the global economy because of the risk that Russia would extend its influence in the Balkans. 'It will not happen, because the consequences would be too terrible,' says the 57-year-old about Greece reaching an uneasy deal with its creditors to prevent it crashing out of the eurozone."

Excerpt from The Guardian -- "In many countries, key slices of the social safety net are tied to full-time employment with a company or the government. Although the broader socioeconomic effects of the gig economy are as yet unclear, it is clear we must rethink the provision of our safety net, decoupling it from salaried jobs and making it more readily available to independent workers."

Professor Kim Schoenholtz was named as a member of the Financial Research Advisory Committee (FRAC) of the US Treasury’s Office of Financial Research (OFR). The OFR, established as a result of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, created the committee to provide advice, recommendations, analysis, and information on topics including research methodologies, data management, and data standards.

Excerpt from PBS NewsHour -- "We’re sort of in a phase where– the model of providing a few hours at a time, or providing to multiple platforms may, in fact, be the most economically efficient one. ... To me, the humane thing isn’t to make everybody a full-time employee, but to extend the safety net to cover people who have alternative forms of work."

Excerpt from The New York Times -- "Our results revealed a sizable and statistically significant negative relationship between the two: The more powerful people perceived themselves to be in their everyday lives, the less frequently they reported feeling lonely."