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Video - Hugh Hendry at the LSE Alternative Investments Conference - bit.ly/uzL8L8
Interested in opinions on this: Research suggests Bonuses and risk not linked - bit.ly/si4mQZ #risk
RT @psyfitec - One...

Hugh Hendry of Eclectica Asset Management spoke at the London School of Economics Alternative Investments Conference earlier this year (see full original video here http://vimeo.com/29879763).

I'd be very interested in people's opinions on this new research from the University of Nottigham:

New research into the causes of the credit crisis has cast doubt on the alleged link between bonus payments and risk exposures in the UK financial sector. Bonuses were widely condemned in the wake of meltdown, with political leaders and regulators among those calling for them to be capped to help prevent future crises. But a study by Nottingham University Business School suggests that the...

Christos Koulovatianos and  Volker Wieland
Via: Voxeu.org
A stock-market collapse such as the one after the 2008 Lehman Brothers default is followed by more pessimistic assessments of the likelihood of future collapses in surveys and by lower price-dividend ratios. This column argues this reaction of expectations and asset prices can be explained by Bayesian decision theory. The key is to appreciate that market participants know little about the drivers of such crashes. They revise...

And we’re not talking figuratively. From the dotcom bust in the late nineties to the housing crash in the run-up to the 2008 crisis, financial bubbles have been a topic of major concern. Identifying bubbles is important in order to prevent collapses that can severely impact nations and economies.
A paper published this month in the SIAM Journal on Financial Mathematics addresses just this issue. Opening fittingly with a quote from New York Federal Reserve President William Dudley...

Cade Metz writes over at Wired

Wall Street isn’t the most magnanimous of places. In fact, several thousand people continue to Occupy Wall Street because it won’t share what it has with others.
But NYSE Technologies is happy to play against type.
NYSE Technologies is the IT division of NYSE Euronext, the company that operates the New York Stock Exchange and various other exchanges across the globe. In essence, it provides tech services to the financial outfits that use these...

The recent financial crisis has generated many distinct perspectives from various quarters. In this article, Professor Andrew Lo reviews a diverse set of 21 books on the crisis, 11 written by academics, and 10 written by journalists and one former Treasury Secretary.
"No single narrative emerges from this broad and often contradictory collection of interpretations, but the sheer variety of conclusions is informative, and underscores the desperate need for the economics profession to establish...

Paolo Manasse Professor of Macroeconomics and International Economic Policy at the University of Bologna
Economists make it their business to know about incentives. Indeed they devote entire blogs to the subject. But what are the incentives for top economists to ‘waste’ time on these blogs in the first place? This column calls on researchers out there to find out.
Why do many economists, especially in the US, devote a lot of time and effort to manage a blog (notable examples are...

By Viral Acharya and Matthew Richardson
Macroprudential regulation aims to reduce systemic risk by correcting the negative externalities caused by breakdowns in financial intermediation. This column describes the shortcomings of the Dodd-Frank legislation as a piece of macroprudential regulation. It says the Act’s ex post charges for systemic risk don’t internalise the negative externality and its capital requirements may be arbitrary and easily gamed.
The economic theory of...

Tradestreaming.com is a community resources for learning trading skills created by Zack Miller.
In this edition of Tradestreaming Radio Zack interviews an anonymous student enrolled on the JD / MBA Program at Harvard on his experience of landing a Hedge Fund internship.
How to break into the hedge fund industry with an internship by tradestreaming