Found 3 article(s) for author 'Asset Management'

Cloaked Trading

Cloaked Trading. Lauren Cohen, Christopher Malloy, January 17, 2017, Paper, “Using a novel, proprietary database of micro-level trading activities by asset managers, we show strong evidence of asset managers engaging in strategic trading in order to “cloak” their most valuable trades. This takes the form, for instance, of a manager who sells her entire position of Microsoft on March 30, and then repurchases to re-establish the same position on April 1. This manager will economically be holding the same position throughout, yet without having to publicly signal this position. These cloaked trades earn an abnormal return of 370 basis points in the following month, or over 36% per year.Link

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The Economics of Structured Finance

The Economics of Structured Finance. Joshua D. Coval, Erik Stafford, Winter 2009, Paper. “This paper investigates the spectacular rise and fall of structured finance. The essence of structured finance activities is the pooling of economic assets like loans, bonds, and mortgages, and the subsequent issuance of a prioritized capital structure of claims, known as tranches, against these collateral pools. As a result of the prioritization scheme used in structuring claims, many of the manufactured tranches are far safer than the average asset in the underlying pool…” May require purchase or user account. Link

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