This paper shows that stable net-interest margins of banks are uninformative about banks' interest rate exposure. We show that neither deposits nor market power are essential for achieving stable net-interest margins (NIM) in long-short fixed income portfolios. We show that matching interest...

The deposit channel of monetary policy is neither well identified nor does it aggregate. US banks predominately use uniform deposit rate setting policies, particularly the largest banks. Uniform rate setting ignores local market concentration and therefore, the deposit channel cannot operate in...

In February 2010, Jane Mendillo, CEO of Harvard Management Company, was reflecting on the list of issues facing Harvard University's endowment in preparation for the upcoming board meeting. The recent financial crisis had vividly highlighted several key issues including the adequacy of...