Philip Bond - Faculty Research in Knowledge@Wharton

Tainted Tea Leaves: How Market Expectations Can Lead Regulators Astray

Wed, 29 Apr 2009 14:19:24 EST

Securities prices are an important source of information that helps the government decide if it should intervene to rescue a struggling firm. But if investors expect government intervention, they might bid up the security's price to a level not warranted by the fundamentals. This "feedback loop" could prevent a company from getting help it desperately needs, according to research by Wharton professors Itay Goldstein and Philip Bond. They suggest a solution.

Victimizing the Borrowers: Predatory Lending's Role in the Subprime Mortgage Crisis

Wed, 20 Feb 2008 15:18:03 EST

As fallout from the subprime lending crisis continues, a number of remedies have been proposed to deal with it. One is legislation to curtail predatory lending, which is generally thought to be a factor behind the issuing of so many subprime loans to borrowers with poor credit. What qualifies as predatory lending? And what are the conditions that make it flourish? Wharton finance professors David Musto, Philip Bond and Bilge Yilmaz analyze predatory lending in a new paper titled, "Predatory Lending in a Rational World."

Mutual Fund Scandals: Once Again, Individual Investors Are the Losers

Wed, 24 Sep 2003 00:00:00 EST

Recent revelations about late trading and market timing in mutual funds at Bank of America and other fund complexes come on the heels of earlier incidents involving sales incentives for brokers to push in-house funds and some companies� failure to credit investors with volume discounts on fees. Is the mutual fund industry going to become mired in the kind of scandal that has afflicted so many public companies over the past few years?