An Endless Leverage Certificate is a novel structured product that has become very popular among European retail investors. ELC-holders have the right to claim the difference between the value of underlying and a contractual financing level at any time during the unlimited life of the contract....

An Endless Leverage Certificate is a novel structured product that has become very popular among European retail investors. ELC-holders have the right to claim the difference between the value of underlying and a contractual financing level at any time during the unlimited life of the contract....

In this paper we re-examine the risk sharing potential of inter- generational financial intermediaries taking into account their governance structure. We argue that asset buffers of perpetual institutions are limited by the temptation of the living stakeholders to renegotiate contributions and...

In this paper we analyze the statistical properties of three popular measures of price discovery used in empirical market micro structure research. We find that the variance ratio is a consistent estimator for the informativeness of trades or time periods if the price process follows a...

In this paper we investigate under what conditions financial intermediaries can improve welfare through intergenerational risk sharing. We review the constraints suggested by the extant literature and propose a new limitation on intergenerational risk sharing: We argue that an intermediary's...

In this paper I claim that public-going owner-managers do not know the true value of their firms. The price that the stock-market sets for the firm's shares after the IPO is a better estimate for the true firm-value than the prior that management had before the offering. Because a higher...

We propose the Volume Coefficient of Variation (VCV), the ratio of the standard deviation to the mean of trading volume, as a new and easily computable measure of information asymmetry in security markets. We use a microstructure model to demonstrate that VCV is strictly increasing in the...