Academic insights into asset classes, markets, and economies

Insights from Wharton School, Apple, Erasmus University and more

Explore this selection of academic papers that grapple with the crucial issues of today. These include the question of whether LLMs are truly thinking, the impact of “tariff shock” on markets, and how corporations are dealing with climate risk against a complex political backdrop.

The Illusion of Thinking (Apple)

Are current LLM models capable of generalizable reasoning, or are they leveraging different forms of pattern matching?

Constructing Portfolios with Climate-Relevant Metrics (Amundi)

For compliance reasons, this paper is NOT accessible in the United States

The integration of climate-related metrics is changing the traditional frameworks for both passive and active investors.

What Is the Bond Market Telling Us? (Georgetown University)

The U.S. Treasury market has long been considered the world's most stable and liquid sovereign fixed-income market. Recent events challenge this view.

How Private Equity Firms Are Coping With Tariffs (Wharton School)

Private equity firms need a reasonable degree of earnings visibility to confidently underwrite deals and assess valuation.

Cognitive Diversity in Asset Management (NICSA)

Cognitive diversity describes the range of expertise, experience, information, perspectives, preferences, and ways of thinking within a team.

The Impact of AI on Individual Manual Investment Decisions (HKIMR)

Many financial institutions are developing various AI-based investment consultants. These tools empower investors, rather than replacing them.

Tariff War Shock and the Convenience Yield of U.S. Treasuries (NYU Stern)

This paper explores how the “tariff war” shock of early April 2025 affected the convenience yield of U.S. Treasuries.

Concentration Risk in Sustainable Investing (Erasmus University)

For decades, institutional investors, such as pension funds and insurance companies, have predominantly followed investment strategies that closely track broad market indices.

Climate Disclosures by the S&P 500 (UCLA Anderson)

Investors want to know how climate change might pose risks to a business. However, disclosures in this area are far from uniform.

Stablecoin Runs and the Centralization of Arbitrage (Becker Friedman Institute)

The authors of this paper find that stablecoins with fewer arbitrageurs have larger average price deviations in secondary markets.