Financial Markets

Barbara Jankowiak, Natan Misak and Nicholas Vause Both financial market participants and regulators have suggested that investor risk appetite has declined since the beginning of the year. This post presents some evidence from credit markets consistent with such developments, and offers two possible explanations. We build on analysis in an earlier post that looked at … Continue reading Bitesize: The pricing of credit risk →

Julian Reynolds Moves in oil prices have significant implications for the global economic outlook, affecting consumer prices, firm costs and country export revenues. But oil futures contracts tend to give an imperfect steer for the future path of oil prices because, at any given time, futures contracts may be affected by a wide range of … Continue reading What is the information content of oil futures curves? →

Naoto Takemoto, Simon Jurkatis and Nicholas Vause In less than two decades, the system of market-based finance (MBF) – which involves mainly non-bank financial institutions (NBFIs) providing credit to the economy through bonds rather than loans – has both mitigated and amplified the economic effects of financial crises. It mitigated effects after the global financial … Continue reading Strengthening the resilience of market-based finance →

Gábor Pintér Are larger trades more or less expensive to execute in bond markets than smaller trades? This is an old and unsettled question in the literature on financial markets. The aim of this blog post is to provide novel answers to this question, based on our recent research using transaction-level data from the UK … Continue reading Do larger bond trades cost more to execute? →