This paper reviews the more recent literature addressing different facets of speculation in
commodity markets, including the role of speculators and the impact that financialization in …

We study how environmental, social and governance (ESG) investing reshapes information
aggregation by prices. We develop a rational expectations equilibrium model in which …

Credit default swaps (CDS) have been growing in importance in the global financial
markets. However, their role has been hotly debated, in industry and academia, particularly …

We empirically examine the impact of industry exchange-traded funds (IETFs) on informed
trading and market efficiency. We find that IETF short interest spikes simultaneously with …

Against the backdrop of the role of derivatives in the recent financial crisis, this paper
investigates the effect of derivatives usage on the risk and exposure of nonfinancial firms …

We provide a synthesis of the empirical evidence on market liquidity. The liquidity
measurement literature has established standard measures of liquidity that apply to broad …

No. In the presence of speculative opportunities, investors can learn about both asset
fundamentals and the beliefs of other traders. We show that this learning exhibits …

A breakdown of cross-market arbitrage activity could make markets more fragile and result in
price crashes. We provide suggestive evidence for this novel channel based on a high …

We provide a model to understand the effects of commodity futures financialization on
various market variables. We distinguish between financial speculators and financial …

We provide a model of nonredundant credit default swaps (CDSs), building on the
observation that CDSs have lower trading costs than bonds. CDS introduction involves a …