Financial companies use fundamental factor models to understand how asset returns are connected and to manage risk. But after big events like COVID-19, analysts might wonder if their risk models still fit well. Specifically, they want to know if, after accounting for known factors, the leftover part
Imagine you're a farmer. You know that to improve your crops, you need the right tools and resources. That’s where financial development comes in. When banks offer loans, farmers can afford better equipment, like those that help manage energy more efficiently. But, being a farmer also means dealing
Russia's ruble has been on a wild ride, hitting a low not seen since the start of the Ukraine war. The central bank had to step in to shore up the currency, which slid to 114 against the dollar. This sharp fall has experts worried about the country's economic health. They see signs of a full-blown c
Ever wondered how investor interest impacts the ups and downs of cryptocurrencies, especially during a global pandemic like COVID-19? This study looked at the top 20 cryptocurrencies from January 2016 to April 2021 to find out. They used a method called Two Stages Least Squares to see how investor a
Ever wondered how the price of an option can be predicted using waves? Meet the Ivancevic Option Pricing Model, a different take from the classic Black-Scholes model. This model uses complex equations, called adaptive nonlinear Schrödinger equations, to describe waves influenced by stock prices over
Federal Reserve officials are planning to lower interest rates gradually. They think inflation is coming down and the job market is doing well. This means they can afford to cut rates slowly. The meeting notes said that if things stay as expected, with inflation going down and jobs staying strong, r
The Federal Housing Finance Agency has decided to raise the maximum amount they'll guarantee for single-family home loans, starting in 2025. This change reflects the increasing prices of homes across the country. From January, Fannie Mae and Freddie Mac can now back loans of up to $806, 500 for home
U. S. stocks had a major celebration on Monday, with big indexes hitting all-time peaks. Meanwhile, Asia-Pacific markets took a small dip on Tuesday, with Japan's Nikkei 225 dropping 1. 38%. Chinese and Hong Kong markets stayed steady. Investors are cheering for Scott Bessent, Donald Trump's choice
At 94, Warren Buffett, the iconic investor and CEO of Berkshire Hathaway, has revealed his detailed plan for his massive fortune after he passes away. In a recent letter to shareholders, Buffett expressed his views on mortality and his hope that his three children, who are in their 60s and 70s, will
Imagine if someone offered you a deal, and you thought it was a bit low – that's what's going on in the Italian banking world! Banco BPM is having a bit of a spat with UniCredit over a takeover bid. UniCredit comes knocking with a 10 billion-euro offer, but Banco BPM's board said, "Thank you, but no
