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Enhancing Monitoring of NBFI Exposure: The Case of Open‑End Funds
Nicola Cetorelli and Debashish Sarkar Non-bank financial institutions (NBFIs) have grown steadily over the last two decades, becoming important providers of financial intermediation services. As NBFIs...
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CRISK: Measuring the Climate Risk Exposure of the Financial System
Hyeyoon Jung A growing number of climate-related policies have been adopted globally in the past thirty years (see chart below). The risk to economic activity from changes in policies in response to...
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Are There Too Many Ways to Clear and Settle Secured Financing Transactions?
Adam Copeland, Frank Keane, and Jenny Phan The New York Fed’s Treasury Market Practices Group (TMPG) recently released a consultative white paper on clearing and settlement processes for secured...
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Look Out for Outlook‑at‑Risk
Nina Boyarchenko, Richard Crump, Leonardo Elias, and Ignacio Lopez Gaffney The timely characterization of risks to the economic outlook plays an important role in both economic policy and private...
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Banks’ Balance‑Sheet Costs and ON RRP Investment
Gara Afonso, Marco Cipriani, Catherine Huang, and Gabriele La Spada Daily investment at the Federal Reserve’s Overnight Reverse Repo (ON RRP) facility increased from a few billion dollars in March...
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Measuring the Financial Stability Real Interest Rate, r**
Ozge Akinci, Gianluca Benigno, Marco Del Negro, Ethan Nourbash, and Albert Queralto Comparing our financial stability real interest rate, r** (“r-double-star”) with the prevailing real interest rate...
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Runs on Stablecoins
Kenechukwu Anadu, Pablo D. Azar, Marco Cipriani, Thomas Eisenbach, Catherine Huang, Mattia Landoni, Gabriele La Spada, Marco Macchiavelli, Antoine Malfroy-Camine, and J. Christina Wang Stablecoins are...
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What Makes Cryptocurrencies Different?
Anders Brownworth, Jon Durfee, Michael Lee, and Antoine Martin Permissionless blockchains, which support the most popular cryptocurrency networks like Bitcoin and Ethereum, have shown that it is...
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Leader‑Follower Dynamics in Shareholder Activism
Doruk Cetemen, Gonzalo Cisternas, Aaron Kolb, and S. “Vish” Viswanathan Activist shareholders play a central role in modern corporations, influencing the capital structure, business strategy, and...
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Options for Calculating Risk‑Free Rates
Jules van Binsbergen, William Diamond, and Peter Van Tassel One of the most fundamental concepts in finance is the notion of a risk-free rate. This interest rate tells us how much money investors are...
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A Look at Convenience Yields around the World
William Diamond and Peter Van Tassel This post estimates “convenience yields” for government debt in ten of the G11 currencies based on analysis from a recent paper. As in our companion post, we...
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How Has Treasury Market Liquidity Evolved in 2023?
Michael Fleming In a 2022 post, we showed how liquidity conditions in the U.S. Treasury securities market had worsened as supply disruptions, high inflation, and geopolitical conflict increased...
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Blog Series on the Economic and Financial Impacts of Extreme Weather Events...
Julian di Giovanni The frequency and ferocity of extreme weather events, such as flooding, storms, and deadly heat waves, have been on the rise in recent years. These climate events, along with human...
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Bond Funds in the Aftermath of SVB’s Collapse
Nicola Cetorelli and Sarah Zebar March 2023 will rightfully be remembered as a period of major turmoil for the U.S. banking industry. In this post, we go beyond banks to analyze how fixed-income,...
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Treasury Bill Supply and ON RRP Investment
Gara Afonso, Marco Cipriani, Catherine Huang, Gabriele La Spada, and Sergio Olivas Take-up at the Federal Reserve’s Overnight Reverse Repo Facility (ON RRP) increased from a few billion dollars in...
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Racial and Ethnic Wealth Inequality in the Post‑Pandemic Era
By Rajashri Chakrabarti, Natalia Emanuel, and Ben Lahey Editor’s note: The DFA data upon which this post was based show a decline in the aggregate real wealth of Black households after 2019, as...
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Measuring Treasury Market Depth
Michael Fleming, Isabel Krogh, and Claire Nelson A commonly used measure of market liquidity is market depth, which refers to the quantity of securities market participants are willing to buy or sell...
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Stablecoins and Crypto Shocks
Kenechukwu Anadu, Pablo D. Azar, Marco Cipriani, Thomas Eisenbach, Catherine Huang, Mattia Landoni, Gabriele La Spada, Marco Macchiavelli, Antoine Malfroy-Camine, and J. Christina Wang In a previous...
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Physical Climate Risk and Insurers
Hyeyoon Jung, Robert Engle, Shan Ge, and Xuran Zeng As the frequency and severity of natural disasters increase with climate change, insurance—the main tool for households and businesses to hedge...
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Monetary Policy and Money Market Funds in Europe
Marco Cipriani, Daniel Fricke, Stefan Greppmair, Gabriele La Spada, and Karol Paludkiewicz As shown in a past Liberty Street Economics post, in the United States, the yields of money market fund (MMF)...
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