Center for Financial Frictions
FRIC in the news
FRIC in the news 2016
Below you can find selected news items where FRIC research or FRIC members have been featured.
FRIC research creates headlines
Research by FRIC member and associate professor at the Department of Finance, Jens Dick-Nielsen and his co-authors is the basis for a discussion of the current LCR (Liquidity Coverage Ratio) regulation in the EU. Read more about it here.
FRIC in the news 2015
FRIC'15 Conference on Efficiently Inefficient Markets with Nobel Laureate as Keynote
The FRIC'15 Conference took place August 24-25, 2015 and had 170 registered participants. Among the keynote speakers, the conference featured Nobel Laureate Lars Peter Hansen, University of Chicago.
To Finanswatch, Lars Peter Hansen said: ”Financial frictions is an important subject, which we may have underestimated. But it is fundamentally important how people relate to uncertainties, and the work that David (Lando, ed.) and Lasse (Heje Pedersen, ed.) do, is really at the forefront and it is also a subject that the rest of us are highly interested in". (Translated from the Danish quote).
The FRIC'15 conference was mentioned in several articles:
Berlingske Business: Nobelmodtager: Kurspanik skyldes usikkerhed
CBS Observer: FRIC’15 konference med stjerneforskere i København
Lasse Heje Pedersen’s book Efficiently Inefficient listed as one of the top investment books to read tin 2015
The Wall Street Journal placed Lasse Heje Pedersen's book Efficiently Inefficient: How Smart Money Invests and Market Prices Are Determined on the list of “the books Wall Street’s smartest people think you should read this summer”, where it was recommended by Torsten Slok, Chief International Economist at Deutsche Bank.
At the EFT.com, Larry Swedroe recommended Efficiently Inefficient as “a must-read for serious investors”.
Lasse Heje Pedersen also wrote an article in the Institutional Investor: Are Markets Efficient or Irrational? Actually, A Bit of Both.
FRIC center member Jens Dick-Nielsen attending OECD Financial Roundtable
Associate professor and FRIC center member Jens Dick-Nielsen was interviewed for the Global Risk Regulator in connection with his research on bond market liquidity and was subsequently invited for the OECD Financial Roundtable on liquidity in Paris.
The Global Risk Regulator is an online service from The Banker under Financial Times. Read the full article here. http://www.globalriskregulator.com/Subjects/Liquidity/Regulators-alarm-rises-on-secondary-market-liquidity (requires login to FT).
Lasse Heje Pedersen received the EliteForsk Award 2015
Professor Lasse Heje Pedersen received EliteForsk Award 2015 for his research on financial economics.
FRIC in the news 2014
Research paper featured in Financial Times
The research paper Buffet's Alpha by Lasse Heje Pedersen and co-authors was featured in the Financial Times article (28 February, 2014): How to invest like Warren Buffet
David Lando in Finanstilsynet
Center leader David Lando was featured in the Finanswatch article (1 July 2014) Her er tilsynets ny bestyrelse as an 'academic heavy-weight' in relation to his nomination in the Danish Financial Supervisory Authority (Finanstilsynet).
FRIC in the news 2013
FRIC research changes EU banking regulation
Covered bonds are considered assets of extremely high liquidity in the final EU Capital Requirement Directive draft (CRD IV). This is a new way of considering covered bonds and research by FRIC member Jens Dick-Nielsen and co-authors has been cited as the key argument for changing the status for Danish covered bonds in CRD IV.
The new status for covered bonds follows a recent report by the European Banking Authorities (EBA). It is the EBA who will eventually decide on the exact definitions of highly liquid assets eligible for use in the calculation of the Liquidity Coverage Ratio (LCR).
The EBA report primarily cites the paper by Dick-Nielsen, Gyntelberg and Sangill (2012), when talking about covered bond liquidity and the potential methodology for how to assess the liquidity of other European covered bond markets as well.
At the moment, only Danish covered bonds fulfill the requirements for being extremely liquid. The extended definition of assets with extremely high liquidity to include covered bonds will therefore benefit both Danish financial institutions and the Danish mortgage bond market as a whole.
For more information, see the paper by Dick-Nielsen, Gyntelberg and Sangill (2012), the EBA report February 21, 2013 and the media coverage in Reuters, March 28, 2013
FRIC in the news 2012
Uncovering Warren Buffett’s success
Professor Lasse Heje Pedersen has uncovered the success of investment guru Warren Buffett.
“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price”, said investment guru Warren Buffett once. Professor Lasse Heje Pedersen, researcher at the FRIC Center for Financial Frictions, has now uncovered Buffett’s success together with his colleagues Andrea Frazzini, New York University, and David Kabiller, AQR Capital Management.
It is about thinking big
"For at være forsker er man nødt til at tro på, at man kan bidrage med noget nyt, og at alle de gængse teorier ikke er komplette."
Lasse Heje Pedersen featured in the articlefrom Jyllandsposten, August 24, 2012.