Desautels professors celebrated for their teaching excellence
Congratulations to Sebastien Betermier, Professor of Finance, and Wei Qi, Professor of Operations Management, who were honoured at McGill’s Management Convocation ceremony for their excellence in teaching.
Delve: Insider Trading by Congress? It's Time to Fix the Law
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.
Business schools to lend a hand in economic recovery
Isabelle Bajeux-Besnainou, Dean of the Desautels Faculty of Management, looks at how business schools are providing community outreach to reduce the economic burden of COVID-19.
Read more in L'actualité
COVID-19 reveals European Union in discord
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.
Read more in Fortune
Insider trading by Congress reveals need for policy change
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.
Professor Sebastian Betermier on sustainable investing
Professor Sebastien Betermier sits down with the McGill Reporter to talk about sustainable investment strategies. According to Professor Betermier, progressive divestment strategies offer the best of both worlds for investors: they create positive environmental change while respecting the needs of all stakeholders.
Desautels professor Sujata Madan receives prestigious 3M National Teaching Fellowship
Professor of Practice Sujata Madan was named one of ten 2020 3M National Teaching Fellows—the highest recognition of individual teaching excellence and educational leadership at the university level. The Fellowship is jointly managed by the Society for Teaching and Learning in Higher Education (STLHE) and 3M Canada.
The complex nature of investment strategies
Professor Sebastien Betermier uses winning student proposals from the 2019 McGill International Portfolio Challenge as the model for sustainable investment strategies of university endowment funds, suggesting that divestment strategies should go beyond a simple yes or no response.
A shift to cash in fixed-income exchange-traded funds
Financial Times has published an article featuring Professor Sebastien Betermier’s research on the increasingly common practice of creating fixed-income exchange-traded fund (FI-ETF) shares in cash.
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Desautels team takes first place at Quebec CFA Research Challenge
Congratulations to Desautels students Olivier Arsenault (MMF’20), Pier-Olivier Laflèche (MMF’20), Sai Kanthasamy (BCom’20), and Mitch McEwen (MMF’20) for placing first in the Quebec regional CFA Research Challenge.
Should you borrow money to invest in your future?
In an article in La Presse, Professor Sebastien Betermier cautions readers against the risk of borrowing money to invest.
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Understanding negative swap rates
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.
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The cash trend in fixed-income exchange-traded funds
Bloomberg has published an opinion piece featuring Professor Sebastien Betermier’s research on the shift from bonds to cash in fixed-income exchange-traded funds (FI-ETF).
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Cross-Listings and the Dynamics between Credit and Equity Returns
Authors: Patrick Augustin, Feng Jiao, Sergei Sarkissian, Michael J Schill
Publication: The Review of Financial Studies, Vol. 33, Issue 1, January 2020
Abstract:
We study how listing in multiple markets affects the dynamics between firms’ credit default swap (CDS) and stock returns. We find that cross-listing increases (1) the sensitivity of CDS to stock returns, (2) the integration of CDS with world equity and bond markets, and (3) the statistical synchronicity of CDS and stock prices. Our results are stronger for firms with greater media attention, analyst and CDS coverage, and Google search intensity and for listings in familiar markets. We suggest that a firm’s presence in global equity markets comes with an improvement in the credit-equity integration through a reduction of informational frictions.
Insider trading rarely leads to prosecution, study shows
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.
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