ƻ��Ժ Desautels Faculty of Management - Patrick Augustin's Recent Media Coverage

Shadow banking is growing – and it’s a hidden risk to the stability of the financial system

ƻ��Ժ — Wed, 07 Jun 2023 17:51:11 +0000

Shadow banking is playing an increasing role in the financial system. Private equity firms, investment funds and mortgage finance companies all employ alternative lending strategies that are lightly regulated, and Canada’s Office of the Superintendent of Financial Institutions is concerned about how much exposure Canada’s banks have to this type of lender, who are collectively known as non-bank financial intermediaries. Their lending is sometimes backed by derivatives, and if their value falls, the loan collateral could be jeopardized.

Delve: Cashing in or Losing Big on Cryptocurrency Yield Farms?

ƻ��Ժ — Wed, 17 May 2023 16:01:46 +0000

If something seems too good to be true, it probably is. Add cryptocurrency yield farms to that list. A complex investment strategy in decentralized finance markets, yield farming advertises eye-popping passively earned returns. While some investors boast impressive returns, for others the risks are unclear or even undisclosed before they invest, and the advertised returns never materialize.

Recap of DGFRC-sponsored finance workshop

ƻ��Ժ — Wed, 12 Apr 2023 15:49:50 +0000

The 10th HEC-ƻ��Ժ Winter Finance Workshop took place from March 26-28, 2023, in Ischgl, Austria, in collaboration with the Faculty of Law, Economics and Finance (FDEF) at the University of Luxembourg. This year’s conference, once again sponsored by the Desmarais Global Finance Research Centre (DGFRC), brought together academics and researchers from around the world to present their latest work in all areas of finance, including interdisciplinary work in law and finance, sustainability, and new financial technologies.

DGFRC-sponsored finance workshop concludes successfully

ƻ��Ժ — Fri, 01 Apr 2022 19:36:58 +0000

The 9th edition of HEC-ƻ��Ժ Winter Finance Workshop as a special edition in collaboration with Goethe University successfully concluded on March 29, 2022. The conference, sponsored by the Desmarais Global Finance Research Centre, took place March 27-29 in Ischgl, Austria, and featured presentations of academic papers in all areas of finance, including interdisciplinary work in law and finance.

Delve - "New Normal" podcast: COVID-19, Ethics, and Stock Tips with Patrick Augustin

ƻ��Ժ — Thu, 03 Jun 2021 13:48:50 +0000

In episode 4 of The ‘New Normal’ hosted by Dave Kaufman, Professor Patrick Augustin from The Desautels Faculty of Management at ƻ��Ժ examines the allegations of insider trading levied against former Georgia Senators David Perdue and Kelly Loeffler at the dawn of the first wave of the COVID-19 pandemic. Should politicians be held to a higher ethical standard when lives are at stake?

The future of ETF regulation

ƻ��Ժ — Thu, 13 May 2021 14:43:23 +0000

Professor Patrick Augustin provides an expert perspective on questions surrounding the regulation of a Bitcoin-traded fund (ETF) proposed by VanEck Associates Group. While the Securities and Exchange Commission (SEC) deliberates, it runs the risk of making space for a digital shadow finance industry to emerge, says Augustin.

Learn more

When sovereign debt becomes a problem

ƻ��Ժ — Wed, 28 Apr 2021 20:21:34 +0000

Professor Patrick Augustin and three other North American economists are ringing an alarm bell about the increasing risks associated with heavy borrowing at the state level. In their recent study of 30 developed countries and 30 U.S. states, they measure the effect of the spread of the COVID-19 pandemic on the borrowing costs of governments.

Prevent members of U.S. Congress from trading individual stocks

ƻ��Ժ — Fri, 18 Dec 2020 21:17:21 +0000

Professor Patrick Augustin wades into the debate over the heated race to fill Georgia’s two Senate seats in a runoff and special election scheduled for January. From his perspective, Senator David Perdue’s stock-trading activities illustrate the hazards of allowing sitting members of Congress to trade individual stocks and highlight the need for legislative reform. Learn more

Potential insider trading following landmark Kodak loan

ƻ��Ժ — Fri, 21 Aug 2020 20:39:57 +0000

In July, the U.S. International Development Finance Corporation (DFC) provided a $765 million loan to support Kodak’s transition from photo giant to producing drugs for the U.S. domestic market. The first loan of its kind under the Defense Production Act, it is not surprising that ensuing events have hinted at the possibility of illegal insider trading, writes Professor Patrick Augustin.

U.S. states facing financial hardship need unity

ƻ��Ժ — Tue, 07 Jul 2020 18:04:29 +0000

As the pandemic takes its financial toll on states across the U.S., Professor Patrick Augustin suggests that compromise and unity from the federal government could provide a lifeline for those facing economic harship.

Delve: Insider Trading by Congress? It's Time to Fix the Law

ƻ��Ժ — Thu, 14 May 2020 22:52:15 +0000

The “coronavirus trades” made by Sen. Richard Burr (R-N.C.) and his wife just prior to the March ’20 market crash raise these questions and signal the need for changes to the law. Some proposals go as far as banning stock trading by members of congress outright. The other extreme is to allow full discretion. The right solution, according to ƻ��Ժ’s Patrick Augustin and co-authors, is in between: Only allowing public officials to trade securities based on broad market indices.

COVID-19 reveals European Union in discord

ƻ��Ժ — Tue, 05 May 2020 19:45:27 +0000

The COVID-19 pandemic has revealed economic weaknesses in some EU countries, with the stronger members reluctant to provide assistance.

Professor Patrick Augustin warns of the economic storm ahead if the EU does not reach solidarity.

Insider trading by Congress reveals need for policy change

ƻ��Ժ — Fri, 24 Apr 2020 16:31:55 +0000

Trading by members of Congress shortly before the March 2020 market crash signals the need for policy change. In an op-ed for The Hill, Professor Patrick Augustin calls for a policy that only allows public officials to trade securities based on broad market indices.

Understanding negative swap rates

ƻ��Ժ — Fri, 17 Jan 2020 18:54:40 +0000

A paper from Professor Patrick Augustin featured in voxEU looks at how the emergence of US default risk can help to explain the pattern of negative swap rates.

Insider trading rarely leads to prosecution, study shows

ƻ��Ժ — Mon, 06 Jan 2020 20:49:41 +0000

A recent article in Belgium’s L’Echo explores Professor Patrick Augustin’s 2019 research looking at the low prosecution rates following unexplained trading activity in the leadup to company takeovers.

Who stands to benefit when companies collapse?

ƻ��Ժ — Thu, 17 Oct 2019 19:59:56 +0000

Following the collapse of veteran tour operator Thomas Cook, Professor Patrick Augustin has co-authored an article that highlights the problem with “empty creditors”, a growing financial market phenomenon impacting distressed firms, and how hedge funds stand to benefit.

How do informed traders trade based on insider information?

ƻ��Ժ — Fri, 03 May 2019 15:18:00 +0000

If previous research has identified the existence of informed trading in the options markets, new work co-authored by Professor Patrick Augustin takes it a step further, offering insights into the actual strategies informed investors are likely to use.

Tricks of the trade: Unmasking insider trading tactics

ƻ��Ժ — Wed, 06 Mar 2019 15:54:43 +0000

A new paper co-authored by Professor Patrick Augustin spotlights some of the strategies that insider traders in the options market might use, as well as provides insight into where regulators might start to detect illegal trading activities – a daunting task given the magnitude of the stocks and bonds being traded.

Professor Augustin to speak at high-profile conference

ƻ��Ժ — Tue, 23 Oct 2018 18:26:00 +0000

Professor Patrick Augustin will be joining the Canadian Association of Alternative Strategies & Assets (CAASA) as a speaker at their annual conference in November.

Taking place in Montreal, the CAASA Annual Conference brings together institutional investors, central bankers, investment managers, and service providers from across Canada, the U.S., Europe, the Middle East, and Asia.

A report to navigate the future financial landscape

ƻ��Ժ — Thu, 28 Jun 2018 18:51:01 +0000

Professor Patrick Augustin, together with a think tank from the World Economic Forum, authored a report entitled, GFC on Financial and Monetary Systems, which lays out the risks and challenges facing the increasingly disrupted financial domain.

Desautels achieves second consecutive win at PRMIA

ƻ��Ժ — Wed, 12 Apr 2017 15:44:30 +0000

Congratulations to Desautels undergraduate students: Evan Coulter, Valentyn Litvin, Meagan Prins, and Marina Simonian who won the top prize at the prestigious PRMIA International Risk Management Challenge- marking a second consecutive victory for the Faculty at this competition.

Desautels undergraduates secure a win at PRMIA Risk Management Challenge

ƻ��Ժ — Fri, 03 Mar 2017 16:47:36 +0000

Congratulations to Desautels BCom students Evan Coulter, Valentyn Litvin, Meagan Prins, and Marina Simonian for winning the PRMIA Risk Management Challenge, marking a third consecutive victory for the Faculty. The team will advance to the International Risk Management Challenge in London, UK on April 7th, 2017 for a chance to win the grand prize of $10,000 USD.

Detecting Illegal Insider Trading

ƻ��Ժ — Thu, 01 Dec 2016 17:54:49 +0000

A few years ago, Preet Bharara, the U.S. Attorney of the Southern District of New York, proclaimed that insider trading is “rampant” in U.S. securities markets, a quote well known to followers of financial markets and securities law. [1] Increased efforts by the U.S. department of Justice (DoJ) and the Securities and Exchange Commission (SEC) have been met with both success and failure. The admission of guilt in the insider indictment of SAC Capital, the well-known hedge fund, can certainly be counted as a victory. In contrast, the case United States vs.

Hutchins Roundup: Macroprudential policies, bonus depreciation, and more

ƻ��Ժ — Fri, 22 Jan 2016 16:01:18 +0000

Studies in this week’s Hutchins Roundup find that macroprudential policies that target the cost of bank capital are the most effective way to contain housing booms, bonus depreciation has a significant impact on investment, and more.

Insider Trading Investigators Have a Blind Spot

ƻ��Ժ — Mon, 16 Mar 2015 17:31:36 +0000

Over the past year, a record 266 companies have spun off divisions in a trend bankers are calling “Spinmania.” If history is any guide, about 35 of those deals will have leaked undetected to inside traders.

A new study by a team of finance professors suggests one in eight corporate spinoffs and divestments in the U.S. between 1996 and the end of 2013 was preceded by suspicious trading in options markets. The Securities and Exchange Commission hasn’t brought a single case relating to such trading then or since, according to the report, due to be published later this month.

Third Annual OptionMetrics Research Conference Brings Together International Academia, Financial Professionals to 'Convene' on October 20th in New York City

ƻ��Ժ — Tue, 23 Sep 2014 15:13:49 +0000

OptionMetrics, a leading source for quality historical option price data, tools and analytics, has announced the upcoming OptionMetrics Research Conference (ORC2014). The conference will be held on October 20th at Convene, located at 810 Seventh Avenue in Times Square. It will bring together financial professionals and researchers from academia and business to share ideas and increase understanding of the options markets.

Study: Lots of suspicious trading, but not many convictions

ƻ��Ժ — Thu, 24 Jul 2014 17:28:08 +0000

According to a new study, insider trading often occurs during merger and acquisitions and is rarely punished. BNN takes a closer look with one of the report's co-authors, Patrick Augustin, Assistant Professor of Finance, Desautels Faculty of Management, ƻ��Ժ.

Watch full video: Business News Network

Rampant insider trading rarely leads to prosecution, says study

ƻ��Ժ — Tue, 15 Jul 2014 20:57:17 +0000

Insider trading continues to be “pervasive” before merger and acquisition deals but rarely leads to prosecutions, according to an analysis of unusual trading patterns by a team of professors in Canada and the United States.

Es más probable que rechace las jerarquías si no se siente atractivo

ƻ��Ժ — Tue, 15 Jul 2014 20:47:11 +0000

Harvard Business Review. Cuando las personas creen que son atractivas consideran que tienen una clase social más alta y su percepción hacia la desigualdad es más favorable, señala un estudio.

Hillshire Options Bring in the Bacon

ƻ��Ժ — Tue, 08 Jul 2014 17:22:56 +0000

Bullish options bets on Hillshire Brands Co. stand to deliver millions of dollars in profits to one or more traders who correctly wagered in recent weeks that the company's stock would surge.

The problem with insider obsession

ƻ��Ժ — Wed, 25 Jun 2014 16:41:33 +0000

If investors needed another reason to distrust the stock market, here’s a doozy. A study by a trio of researchers in the U.S. and Canada into insider trading found that one-quarter of the big merger and acquisition (M&A) deals over a 15-year period—roughly 460 transactions in total—may have seen people profiting on information before it was public.

Are all insiders rogue traders?

ƻ��Ժ — Wed, 25 Jun 2014 15:37:33 +0000

Insider trading is a topic of intense public debate these days, but this debate must be framed in the context of a clear, objective definition of informed versus insider trading.

Die meisten Insiderhandler kommen davon

ƻ��Ժ — Wed, 25 Jun 2014 15:10:39 +0000

Ofter als gedacht wird illegal ve rsucht, vertrauliche Kenntnisse an der Borse zu versilbern.

Study Asserts Startling Numbers of Insider Trading Rogues

ƻ��Ժ — Tue, 17 Jun 2014 19:59:16 +0000

There is often a tip. Before many big mergers and acquisitions, word leaks out to select investors who seek to covertly trade on the information. Stocks and options move in unusual ways that aren’t immediately clear. Then news of the deals crosses the ticker, surprising everyone except for those already in the know. Sometimes the investor is found out and is prosecuted, sometimes not.

Two Groundbreaking Academic Mergers & Acquisitions Studies Win IRRC Institute Investor Research Award at Millstein Governance Forum

ƻ��Ժ — Thu, 12 Jun 2014 19:31:55 +0000

Two academic research papers that promise to spark new scrutiny of corporate actions such as mergers and acquisitions have won the prestigious Investor Responsibility Research Center Institute (IRRCi) annual investor research competition that focuses on the interaction of the real economy with investment theory. The winning research teams will be presented with a $10,000 award for each paper:

ƻ����Ժ Desautels Faculty of Management - Patrick Augustin's Recent Media Coverage