The Federal Reserve Bank of New York works to promote sound and well-functioning financial systems and markets through its provision of industry and payment services, advancement of infrastructure reform in key markets and training and educational support to international institutions.
The Outreach and Education function engages, empowers and educates the Second District communities that the Bank serves, especially civic leaders, students, educators, small business owners, policymakers and the general public. It furthers the Bank's commitment to the region by listening to the communities we serve and leveraging our unique attributes to positively impact school and university programs, as well as analysis and research.
As long as the costs of trading credit default swap (CDS) futures are lower than the costs of trading centrally cleared swaps, incentives to develop a CDS futures contract will remain. The future success of such hybrid credit swap futures depends on the ability of a financial provider to design a contract that would successfully price in the probability that constituents might default.
The New York Fed has released the first installment of the Household Debt and Credit Report for the Second District, a series that will track credit conditions and consumer borrowing and repayment behavior in New York, New Jersey, Connecticut, and each of the five boroughs of New York City on a biannual basis. A complement to our Quarterly Report on Household Debt and Credit, this series will offer a more detailed look at conditions in the region.
By Michael Gedal, Stephanie Rosoff, and Joelle Scally
Before the U. S. Treasury Department was given exclusive rights to produce legal tender in 1861, U.S. banks created thousands of different styles of bank notes—including holiday-themed currency featuring Santa Claus.
Students in recent years have been paying more to attend college and earning less upon graduation—trends that have raised questions about whether a college education remains a good investment. But research from economists Jaison Abel and Richard Deitz finds that the benefits of college still tend to outweigh the costs.
The illiquidity of long-maturity options has made it difficult to study the term structures of option-spanning portfolios. Vogt proposes a new estimation and inference framework for these option-implied term structures that addresses long-maturity illiquidity.
Today’s complex bank holding companies are the best example of hybrid intermediaries, but Cetorelli argues that financial firms from the “nonbank” space can just as easily evolve into conglomerates with a similar organizational structure, thus acquiring the capability to engage in financial intermediation.
By Nicola Cetorelli, Staff Reports 705, December 2014