By Michelle Dunn, George Washington University

Students Create a Conference on Climate Change

DC entrepreneurs, consultants, policy experts, corporate officials and non-profit leaders came together at The George Washington University on April 8th 2010, to challenge the economic, political, and social status quo and offer a vision for a renewable and sustainable future.  Approximately 200 students, alumni, and professionals from the DC metropolitan area attended the conference to engage in a lively discussion of the top issues facing business and the environment.

By R.F. Culbertson, Carnegie Mellon University

Our Thoughts – What is really going on inside those Black Trading Boxes?

A lot has changed in the last 12 years – making this a market controlled not by mass collective wisdom, but by computers, mathematical equations, dark pools, and black ‘trading’ boxes.

Trading and investing involves understanding that for any transaction you conduct there is a counterpart making the opposite decision, it is impossible to buy without someone selling to you. Structured Credit is no different, except the deals are much larger. On April 16, 2010 the SEC filed a complaint against Goldman, Sachs & Company and employee Fabrice Tourre for misleading investors into a synthetic Collateralized Debt Obligation (CDO) transaction known as ABACUS 2007-AC1.

By Sean Vidolin, Rutgers University

As the financial markets have begun to approach the pre-Lehman levels of 2008, it has come into constant question amongst analysts over whether or not the huge run up we've experienced since last March is sustainable or not. In a rally that saw the S&P 500 rally from the high 600's in March of 2009 to just over 1200 in the past couple days, it is heavily disputed whether or not a rally of this magnitude is truly representative of the state of the banking industry. Recent earnings from JPMorgan suggest that this rally was deserved, as they posted a better than expected 55% rise in their bottom line.

An Interview with Aaron Menkin, President of the George Washington University MBA Energy Group

1. What are the goals of the Energy Group and can you tell me how the organization got started?

The GWU Energy Group enhances the networking and educational opportunities for students and the GW community interested in the investment, development and regulation of the energy and sustainable development industries. With a focus on the Renewable Energy, Cleantech and Green Building markets, the group meets regularly to develop skills, share experiences, contacts, and coordinate speakers/events. The ultimate goal of the group is to maximize GWSB’s standing as a leading knowledge center and talent pool in energy and sustainable development.

By R.F. Culbertson, Carnegie Mellon University

Our Thoughts:
I just Don't Trust This Market
 
Everyday I get asked the same question - "Why are you so glum, the numbers point to recovery".  Everyone cites several recessions where in it took a long time before people bought into the idea of a recovery.  What's different this time - JOBS.  On Friday the CEO Report told us that 22% of all polled companies plan to lay off more people.  The general public may not know how this economy works but they see:  foreclosures, inflation, gas approaching $3 bucks, taxes rising, houses on the market for 24 months, a lot of bad things.   And what is different this time around - it's the Internet!

• Over $700B in corporate debt and $2T in US government debt comes due in 2012, and more through 2014
• HY issuers are different from other types of fixed income issuers in that their credit rating is chronologically local and can thus rise over the course of the debt’s life
• When previously HY issuers re-finance, they often re-finance in or close to the investment grade market, giving them access to deeper markets than the one the original issue was raised in

By Jesse Hou, Boston University

In Buffet We Trust

On Wednesday, March 24, 2010 Berkshire Hathaway two year corporate bond yields dipped below that of comparable treasuries (by about 3.5 basis points), implying that investors at large feel Warren Buffet is a better credit risk than the United States government. Other brand name bonds for companies like Johnson & Johnson, Lowe’s, Abbott Laboratories, and Procter & Gamble also dipped below treasury yields. All of these companies except Procter and Gamble are rated lower than the US Government (AAA) which is contradicted by their respective yields.

An interview with Sherina Khiani, President of the Bentley University Economics & Finance Society

1. What are the goals of the Economics and Finance Society and can you tell me how the organization got started?

When I first started at Bentley University the Economic Finance Society was not an existing organization. During the Spring of 2009, I took the initiative to establish this organization. Currently, this is our first active year on campus with a general body of about 200 students. Our goal is to bring together students with an interest in Economics and Finance.