We discover a novel monetary policy shock that has a widespread impact on aggregate financial conditions. Our shock can be summarized by the response of long-horizon yields to Federal Open Market Committee (FOMC) announcements; not only is it orthogonal to changes in the near-term path of policy...

We argue that buyout waves form in response to fluctuations in aggregate discount rates. In our model, discount rates alter the present value of cash flow improvements and the illiquidity premium demanded by buyout investors. We confirm our predictions empirically. Overall deal activity varies...

Banks' relationships with their depositors are valuable when depositors remain sticky, but this value evaporates if they leave. This tension makes banks fragile when interest rates increase and long-term asset values are depressed. In this scenario, if all of its depositors leave, the bank...