Center for Financial Frictions

FRIC in the news 2018

Interview with David Lando on the Danish FSA (Finanstilsynet) and the ‘Danske Bank Scandal’
David Lando was featured in a large interview in Berlingske this week talking about the Danish Financial Supervisory Authority and its role in connection with the ‘Danske Bank scandal’. You can find the full article here (in Danish): Finanstilsynets formand svarer igen i hvidvasksag: Vi har ikke i et sekund følt os overmatchet

FRIC in the news 2017

FRIC research forms basis for new WRDS data set

FRIC in the news 2016

FRIC research creates headlines

FRIC in the news 2015

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:

Kongressen.com: ”Politikerne skal turde træffe langsigtede økonomiske beslutninger”

Finanswatch: Nobelprismodtager: "Det er tåbeligt at tro, at investorer kan forstå finansielle modeller bedre end folk som mig"

Berlingske Business: Nobelmodtager: Kurspanik skyldes usikkerhed

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.

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 to 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).

Professor Lasse Heje Pedersen received EliteForsk Award 2015 for his research on financial economics.

See the EliteForsk video about Lasse Heje Pedersen

Read the article in Finanswatch about Lasse Heje Pedersen (in Danish)

FRIC in the news 2013

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) and EBA report February 21, 2013.

FRIC in the news 2012

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.

See the media coverage of their papers in The Economist, September 29, 2012 and Børsen, November 5, 2012