The hottest Financial Markets Substack posts right now

Posts are structured with a focus on ESG, economics, and fun on Fridays.
Empirical data is favored over theoretical models in discussions.
Importance of challenging preconceived notions and embracing the messiness of life.

The featured papers discussed in the newsletter are 'Displaced by Big Data,' 'Deep Learning for Corporate Bonds,' and 'Exploiting the dynamics of commodity futures curves.'
The newsletter highlights research on whether new data diminishes the advantages of active fund managers with industry expertise.
Readers are encouraged to subscribe for a 7-day free trial to access the full post archives.

Financial institutions in Nigeria must submit their financial market transaction signature mandate to the Central Bank of Nigeria's Financial Markets Department, detailing authorized dealers, dealing mandates, transaction limits, and annual review requirements.
The signature mandate should include full names, designations, level of authority, and transaction limits of authorized officers, with any changes promptly communicated. Submissions are due by January 12, 2024.
This circular FMD/DIR/PUB/CIR/001/008 emphasizes the importance of transparency, accountability, and clear communication within financial institutions regarding financial market transactions and authorized officers.

Many experts actually did foresee the 2008 U.S. financial crisis even if they couldn't predict its timing or severity.
Alan Greenspan's lack of regulation in financial markets contributed to imbalances, malfeasance, and corruption.
The root cause of the financial crisis was not irrational 'animal spirits', as argued by Greenspan.

Cryptocurrencies like Bitcoin and Ether have seen huge price increases, but they are still new and not widely used for everyday transactions.
The blockchain technology behind cryptocurrencies is real and valuable, but for these currencies to succeed, they need to be more reliable and accepted as money.
Many people are interested in cryptocurrencies as investments more than as actual currencies, which makes it hard for them to be used for purchases.

Get a weekly roundup of the best Substack posts, by hacker news affinity:

Negative interest rates are a real phenomenon, where borrowing costs can drop below zero. This happens when people expect prices to fall and aren't willing to wait to consume.
Central banks can't just force interest rates to stay negative; they influence rates through market signals and buying bonds. If people don't trust these banks, rates may not behave as expected.
Negative rates can hurt the real economy since people might avoid investing. This uncertainty can lead to higher risk in financial markets as investors chase after returns.

Leveraged buyouts involve using a mix of debt and equity to boost a company's value, which can also affect taxpayers.
Control is important; poor management can be turned around by changing investment and dividend policies.
Going private can help companies make tough decisions without worrying about short-term stockholder pressures.

The boss of Australia's biggest airline has resigned, sparking potential opportunities for value investors.
Saudi Arabia has reduced oil production to increase prices and boost their profits.
There is value in financial transaction processing as discussed in this issue.

Markets can show both the best and worst of human nature. They help people be creative and successful, but they can also bring out greed and irrational behavior.
Despite some market failures, they play a crucial role in lifting people out of poverty, especially in countries like India and China. Markets have helped many improve their lives more than previous governments did.
Trusting markets can sometimes feel risky, but they often work better than relying solely on experts to solve big problems. A belief in markets can lead to positive change.

Financial institutions must provide transparent pricing in financial market transactions to avoid market manipulation.
The Central Bank of Nigeria warns against underreporting transaction rates and using 'second cheques' as these practices will be sanctioned.
Compliance with CBN rules and guidelines is crucial for a well-functioning and transparent financial market.