University of Cambridge > Talks.cam > Finance & Accounting Seminar Series > Informed Trading by Advisor Banks? A look at options holdings ahead of mergers

Informed Trading by Advisor Banks? A look at options holdings ahead of mergers

Add to your list(s) Download to your calendar using vCal

If you have a question about this talk, please contact Crystal.

Within an investment bank, there is a tension between the investment banking and asset management divisions: the former possesses substantial private information while the latter seeks information. Information is arguably impossible to completely safeguard, raising the possibility of leaks, either deliberate or inadvertent. To the extent that there is information leakage, we conjecture that it will be observed in the options market, as options represent a relatively cheap means to leverage private information. Empirical evidence is consistent with trading departments of the advisor banks having an information advantage, and leveraging this advantage through options rather than stock.

This talk is part of the Finance & Accounting Seminar Series series.

Tell a friend about this talk:

This talk is included in these lists:

Note that ex-directory lists are not shown.

 

© 2006-2020 Talks.cam, University of Cambridge. Contact Us | Help and Documentation | Privacy and Publicity