Beleaguered Fannie Mae and Freddie Mac: Beacons of stability

President Bush has signed into law a housing package passed by Congress last week that authorizes the Treasury Department to spend federal funds to rescue Fannie Mae and Freddie Mac if necessary.

Different loans for different zones: Patterns in mortgage type distribution

A geographic mapping of subprime and Alt-A loans in the Phoenix metropolitan area has revealed some unexpected results: these risky mortgages are not scattered, but cluster in certain cities and neighborhoods.

Who profits from IPO underpricing?

A firm going public relies on the capital raised in its initial public offering to grow and thrive, but studies have found that IPOs in the United States are underpriced an average of 15 percent.

Subprime discussion part five: Security transparency is a global concern

In Part 5 of our series on the subprime market, real estate finance Professor Anthony Sanders, Jeffrey Coles, chairman of the finance department at the W. P. Carey School of Business and Steven Davidson, vice president, capital market research, Securities Industry and Financial Markets

Subprime discussion part three: When will the dust settle?

In Part 3 of our five-part series on the subprime market, real estate finance Professor Anthony Sanders, Jeffrey Coles, chairman of the finance department at the W. P. Carey School of Business and Steven Davidson, vice president, capital market research, for the Securities Industry and

Determining a merger's value

New research by assistant finance professor Claudia Custodio has found that the diversification discount can be grossly over-estimated as a result of flaws in the way it has traditionally been calculated.

CEO pay is clearly out of whack: Here's how to fix it

In 1980, the average American CEO made about 42 times more than the average American worker. In 2011, the CEO made about 380 times more. CEO pay continued to rise significantly every year in the last half of the 2000s, even as corporate profits were falling.

Who are you? How professional background affects CEO pay

CEOs are in the spotlight today. In a time of economic hardship, their outsized salaries make them targets of criticism and resentment. When their companies succeed, CEOs are celebrated, but when firms fail, these executives are saddled with blame. Cláudia Custódio, assistant professor in the W.

Why do investors sometimes make bad investment choices?

Individual investors sometimes make decisions that are “irrational”—   mistakes they know they shouldn’t be making. So what causes investors to make these mistakes? What causes some investors to be less prone to biased investment decision making and others to be more susceptible to it?

Debt crisis: Similarities, differences and lessons learned from the U.S. and Europe

In 2008, the credit crisis in the United States propelled shock waves across the Atlantic to Europe. Europe’s current debt crisis could send damaging waves to America's shores as well, according to international finance experts at the W. P. Carey School of Business.