Prof. Weitzner's paper wins research award
Congratulations to Gregory Weitzner, Assistant Professor in Finance, whose paper “Bank Loan Markups and Adverse Selection” has won the 2022 John W. Ryan Research Award.
Delve: Why digital currencies could change the future of central banking
Central Bank Digital Currencies (CBDC) represent a possible next step in the technological evolution of banking and the financial intermediation sector, with advances in privacy, fraud protection, and efficiency—but their roles and risks on the high-tech path forward are only now becoming clear.
Peer-to-peer lending platforms are a potential disruptor to a long-established industry
For small businesses – and aspiring businesspeople -- banks have been a financial gatekeeper. Without assets and a business credit profile, businesses are often out of luck. But peer-to-peer lending services are beginning to disrupt an industry that is very set in its ways. Fintech lending platforms like October assign businesses a credit score based on a company’s financial history, default probability, and projected profit margin.
Real estate investment helps Canadian pension plans outperform peers
Canada’s pension plans consistently outperformed their peers between 2004 and 2018, largely thanks to their diversified their assets, which include investments in real estate and infrastructure assets. “Here, the funds are doing it themselves,” says Professor Sebastien Betermier in an interview with Benefits Canada. “They are on the ground, building projects themselves in Toronto, in Montreal and abroad.”
Delve: How Barriers to Foreign Investments Affect Risk-Taking in International Markets, with Francesca Carrieri
What regulations are at play when financial institutions, hedge funds, mutual fund managers, and others invest in stocks and businesses in another country—and who do those regulations ultimately benefit? Despite protecting both foreign investors and countries’ domestic markets, regulatory constraints still present certain barriers to foreign investment, especially in times of market stress, inflation, and increased interest rates.
It is never too early to take learn the basics of investing
Everyone should have basic financial knowledge, even if they have not yet accumulated much wealth, according to Benjamin Croitoru, Finance Professor and Associate Dean for Undergraduate Programs at Desautels. The McGill Personal Finance Essentials course is a good place to start, Croitoru told CTV News Edmonton.
Delve: How FinTech Lending to Small Businesses Opens the Door to Bank Loans, with Paul Beaumont
Bank loans are the typical first step for most small and medium-sized businesses, but another form of business lending has emerged: FinTech companies that use algorithms to determine whether a business is worth the risk.
Why the CAQ’s proposed economic incentives may not be all they cracked up to be
“Many of the drivers of the inflation we are seeing today are coming from the supply and production side of the economy,” says Associate Professor of Finance Sebastien Betermier in an interview with CTV News. The war in Ukraine, post-pandemic recovery and supply side frictions are all factors outside our control contributing to inflation.
Personal Financial Essentials course teaches key investment concepts concisely
Personal finances should be important to everyone, and over the past three years, more than 200,000 people have signed up for McGill’s free Personal Financial Essentials online course. Desautels’ Associate Dean of Undergraduate Programs Benjamin Croitoru spoke with The Just Word podcast about how the course fills an unmet need.
When a recession is coming, investors need to keep a level head
How should investors react to a looming market downturn? Don’t panic, says Prof. Sebastien Betermier, an Associate Professor of Finance at Desautels. This sounds simple enough, but it’s easier said than done.
Alberta politician who is spreading conspiracy theories could become premier
Danielle Smith is running for the leadership of Alberta’s United Conservative Party, and could become Alberta’s next premier. But Smith is campaigning on a platform that includes internet conspiracy theories. In a newsletter, she cautioned that Canada’s currency could be replaced with an international common digital currency, and the federal government could use it to “punish and reward” Canadians.
Inflation is a major challenge for seniors on fixed incomes
When food prices rise, seniors on fixed incomes pay a heavy price. Seniors living on federal pensions have lost $1,600 in purchasing power, according to Pierre Lynch, the president of the Association québécoise de défense des droits des personnes retraitées et préretraitées. And it’s difficult to predict when those costs could come down, says Associate Professor of Finance Sebastien Betermier.
Countries with high debt and a reliance on imports could face tough times
Sri Lanka is facing down a liquidity crisis. It has $50 billion in debt to foreign creditors, but no foreign currency reserves. The country foreign currency was depleted when pandemic-related travel restrictions undermined its thriving tourism industry. It also imports many goods, and costs soared as energy prices rose.
Higher interest rates are already packing a punch
Payments on variable rate mortgages have gone up, and house prices have gone down. We are already seeing the impact of higher interest rates, and we are not done yet, according to Prof. Sebastien Betermier. “I expect to see a continuation of what we are already seeing,” Betermier told CTV News.
FIRM Labs seeks to make AI tools more accessible to individual investors
Artificial intelligence (AI) has changed the way the way that equities are managed – but it has mostly been used by institutions. Prof. Ruslan Goyenko wants to change that. Goyenko is the Scientific Director of Finance Innovation and Risk Management (FIRM) Labs, which brings together financial economists and computer scientists to develop AI-driven portfolio management models that it will distribute to the public.
