RECENT EVENT: SEMINAR WITH ANANTH MADHAVAN (BlackRock/iShares, former University of Southern California) - Tuesday 7 October
on THE RISE, ROLE AND RISKS OF EXCHANGE-TRADED FUNDS
Dr Ananth Madhavan (BlackRock/iShares) gave a largely attended lecture on Exchange-Traded Funds. The world in asset managing is changing. Recent years have seen a variety of financial market developments and innovations, reflecting a broader shift toward passive, index investing. These include the rapid growth of exchange-traded funds (ETF’s), which offer a diversity of exposures across asset classes and geographies. As a consequence, there is increased interest by investors, academics,practitioners and policy-makers in the pricing and trading of these investment vehicles,particularly on less liquid segments of the market. Common concerns include the transmission of liquidity shocks, excess volatility, economically significant premiums/discounts and systemic risk. The talk discussed these issues using factual data and actual case studies. Also was discussed how ETF’s are being used to gain exposure to factors and for tactical uses, and the broader implications of these changes for the asset management industry.
Dr. Ananth Madhavan is managing director and global head of research for iShares Core funds at the world’s largest asset manager BlackRock. In previous positions Ananth Madhavan worked at Barclays Global Investors (BGI) as the global head of trading research and transitions and as a managing director of research at ITG. Ananth Madhavan was a professor of Finance at the Marshall School of Business at the University of Southern California and assistant professor of Finance at the Wharton School of the University of Pennsylvania. He earned his PhD in Economics at Cornell University (1988).
Venue: Groote Industrieele Club, Amsterdam.
TOPICS IN CORPORATE FINANCE Nr 23:
Towards a Better Understanding of the Capitalization of Banks
By Anat R. Admati and others
In the ongoing focus of the Amsterdam Center for Corporate Finance (ACCF) on the future structure of the financial sector, this issue of its series Topics in Corporate Finance is devoted to the subject of capitalization of banks with as leading author Professor Anat Admati, the George G.C. Parker Professor of Finance and Economics at Stanford University has been at the forefront of the bank capitalization discussion.
Over five years ago governments saw themselves forced to step in the oversized and over-risked ´too-big-to-fail´-financial sector and bailed it out at great cost. Even today the consequences of the financial crisis are still being felt. It is therefore that Anat R. Admati is calling for a much more stable and hence less vulnerable and costly banking system as it is better to prevent than to cure.
With the current issue of the Topics in Corporate Finance we seek to contribute to a better understanding of the ways in which the financial sector interrelates with the society at large, i.e. the ´real´ economy. Two papers are included in this issue. One is by Admati (together with Peter M. DeMarzo, Martin F. Hellwig and Paul C. Pfleiderer) on capital regulation and the role of equity. The other is by Sweder van Wijnbergen and Arnoud Boot who for the Dutch policy debate have put together those ideas on capitalization and banking. How the future will unfold is unclear and the heated debates on the future of the financial sector will undoubtedly continue for the years to come. This issue of Topics in Corporate Finance seeks to contribute to the discussion.
To order this publication click on Topics.