Author: Minerva

With the outbreak of the pandemic, an old debate on central banks and their own monetarypolicy has been reopened. Inflation or NGDP targeting? Our analysts Ilaria Caponi and Edoardo Toneatti give in this focus an interesting view on the issue after a careful analysis of the advantages and disadvantages...

In this focus we present an alternative hedging strategy exploiting the work of C.R. Hervey (2019). The dynamic strategy consists in building a long short quality portfolio - long on high quality, short on low quality stocks - which would be rebalanced each 6 months....

Would you rather buy naked puts or implement short selling strategies? What are their respective “costs” and expected returns? Here a comparison of short selling strategies versus option trading strategies. Firstly, we introduce short selling from a theoretical standpoint and then we analyse some examples such...

What is the relationship between AI and Financial Services? Why should firms consider AI as a core component? Here is a summary of the most interesting subfields of AI applied to optimise processes, drive cost efficiency and maintain competitiveness. Firstly, we introduce NLP and its relevant tools...

Why Eurozone banks profitability remains so depressed and has not fully recovered to its pre-crisis levels? This report investigates the determinants and makes comparisons with US and Nordic banks, whose returns are significantly higher. The analysis considers the economic growth and negative rates policy, high operating...

Yesterday, the price of oil fell to its third lowest level in history. This is happening just days after the previous crash due to OPEC’s oil price war. Why is this happening and what should we expect in this unprecedented scenario? To find out, read Alessandro...