Monday, October 29, 2012

Econ Shout Outs

Although my responsibilities are still limited at Santander, my job involves wading through piles of regional financial news, economic data and reports from international bodies like the IMF.

If I haven't said that I appreciated the economics-heavy education I got at SAIS, I'd like to say it now. If it weren't for my extremely intelligent TAs and dynamite professors in a range of quantitative classes from International Monetary Theory to Corporate Finance, the following words (all taken from a working paper I'm digesting and summarizing for my boss) would just be gibberish to me:

"The effects of domestic and external variables on banks' bond credit spread and interbank market spread are examined using least squares estimations, with standard error adjusted for heteroscedasticity and autocorrelation" - Thank you Professor Mark White!
"Since Merton (1974), the equity is viewed as a call option on a firm's assets with maturity T, the equity price is the spot price and the maturing debt at time T per share is the strike price" - Thank you Professor Gordon Bodnar!
"External pressures also transmit via arbitrage to domestic interest rates" - Thank you Professor Richard Pomfret!
Thanks also to Professor Matthijs, Professor Larson and some great TAs I've had: Thishani, Deepti, Neil, Lisa and Kyle. You might not read my blog but I'm surviving because of you.

Stay tuned for fewer work-related blog posts and more travel-related blog posts... Friday was pay day!