Academic Finance Research and Insights

The Secular Decline in Interest Rates and the Rise of Shadow Banks

By |February 2nd, 2026|Elisabetta Basilico, Banking Institutions, Research Insights, Other Insights|

Over the last 20 years, a massive shift has occurred, with "shadow banks"- non-depository institutions like Quicken Loans -capturing nearly half of all originations. While many attribute this to new technology or post-crisis rules, recent research reveals a deeper economic catalyst: the secular decline in interest rates..

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Revaluation Alpha: Why Past Factor Returns May Be Misleading

By |January 30th, 2026|Research Insights, Factor Investing, Value Investing Research, Momentum Investing Research|

Past returns often include non-repeatable revaluation alpha. Since structural alpha is the only component likely to persist, it’s essential for investors to distinguish this from one-off valuation windfalls before placing trust—or capital—in any factor or fund.

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Low-Cost Financing via Short Box Spreads: A Primer for Financial Advisors 

By |January 28th, 2026|Options, Research Insights, Guest Posts, Other Insights|

It is well-known that box spreads offer investors the ability to lend via the options market at similar rates to Treasury Bills. But there is another, less popular side of the box spread market – borrowing money. This articles dives into the mechanics of how to use box spreads to borrow at low costs.

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Is Value Investing Dead?

By |January 23rd, 2026|Predicting Market Returns, Research Insights, Factor Investing, Value Investing Research, Size Investing Research, Macroeconomics Research|

After years in what can be now called one of the worst (if not the worst) period for value investing, many investors have packed their bags and called it quits. We’ve heard this be said over and over again; and yet, many of their arguments look extremely compelling. So are they in the right? Let's examine.

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Can AI Read the News Better Than You? How ChatGPT Could Transform Momentum Investing

By |January 16th, 2026|Research Insights, AI and Machine Learning, Momentum Investing Research|

ChatGPT and similar large language models can enhance traditional investment strategies through superior interpretation of financial news. The improvements are economically meaningful, statistically robust, and persist under realistic implementation constraints.

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How Geopolitics is Being Priced in Real Time

By |January 12th, 2026|Elisabetta Basilico, Research Insights, AI and Machine Learning, Other Insights|

By reading earnings calls and analyst reports at scale, algorithms can identify who is applying pressure, who is being targeted, which instruments are used, and how firms respond. The result is a new way to observe geopolitical risk as it actually enters corporate decision making.

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The Hidden Risks of Leveraged Single-Stock ETFs

By |January 2nd, 2026|Transaction Costs, Research Insights, Larry Swedroe, Other Insights, ETF Investing|

Leveraged ETFs function precisely as designed—they deliver leveraged exposure to daily returns, not long-term performance. Problems emerge when investors misuse these instruments for purposes they weren't built for, particularly buy-and-hold investing or long-term wealth accumulation.

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Taming the Anomaly Zoo: How Macroeconomic Forces Shape Market Returns

By |December 26th, 2025|Larry Swedroe, Factor Investing, Research Insights, Other Insights, Macroeconomics Research|

Success lies not in collecting exotic anomalies like rare zoo specimens, but in understanding the economic forces that drive sustainable return patterns. Focus on strategies with solid macroeconomic foundations, maintain healthy skepticism about new discoveries, and always account for implementation costs.

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