Financial Market Frictions and Systemic Risks
Organized by Wenxin Du, Alp Simsek, Chester S. Spatt, and Mao Ye
Supported by the Office of Financial Research through an interagency agreement with the National Science Foundation
September 18-19, 2025
Washington Marriott Capitol Hill, Burnham Ballroom, 175 L Street NE, Washington, DC
Format: 30 minutes for authors, 20 minutes for discussants and 10 minutes for general Q&A
Thursday, September 18
7:45 am
Continental Breakfast - Kingsman Park Room
8:15 am
Opening remarks
8:30 am

Sophisticated Borrowing Constraints and Macroeconomic Dynamics

Al-Mahdi Ebsim, New York University
Chen Lian, University of California, Berkeley and NBER
Yueran Ma, University of Chicago and NBER
Pablo Ottonello, University of Maryland, College Park and NBER
Diego J. Perez, New York University and NBER

Discussant:
Adriano A. Rampini, Duke University and NBER
9:30 am
Break
9:45 am

The Implications of Instant Payment Systems on the Banking System

Yiming Ma, Columbia University and NBER
Yao Zeng, University of Pennsylvania and NBER

Discussant:
Charles Kahn, University of Illinois Urbana-Champaign
10:45 am
Break
11:00 am

Anatomy of Option Retail Trading

Xing Huang, Cornell University
Philippe Jorion, University of California, Irvine
Christopher Schwarz, University of California, Irvine

Discussant:
Robert Battalio, University of Notre Dame
12:00 pm
Lunch - Kingsman Park Room
1:30 pm

Too-many-to-ignore: Regional Bank CRE Risk and Externalities

Franz J. Hinzen, Dartmouth College
Felipe Severino, Dartmouth College
Stijn Van Nieuwerburgh, Columbia University and NBER

Discussant:
Alexei Tchistyi, Cornell University
2:45 pm
Break
3:00 pm

When Cash Flows Turn Negative: Liquidity-Driven Selling by Pension Funds

Joshua Rauh, Stanford University and NBER
Aleksandar Andonov, University of Amsterdam
Kristy A. E. Jansen, University of Southern California

Discussant:
Nathan Foley-Fisher, Federal Reserve Board of Governors
4:00 pm
Break
4:15 pm

Buybacks (slides)

Darrell Duffie, Stanford University and NBER
Michael J. Fleming, Federal Reserve Bank of New York
Or Shachar, Federal Reserve Bank of New York
Peter Van Tassel, Federal Reserve Bank of New York
Samuel V P. Wycherley, Stanford University

Discussant:
Julia Selgrad, University of Chicago
5:15 pm
Adjourn
6:00 pm
Reception and Group Dinner - Kingsman Park Room
Friday, September 19
8:00 am
Continental Breakfast - Kingsman Park Room
8:30 am

Asset Purchase Rules: How QE Transformed the Bond Market

Valentin Haddad, University of California, Los Angeles and NBER
Alan Moreira, New York University and NBER
Tyler Muir, University of California, Los Angeles and NBER

Discussant:
Gregory Duffee, Johns Hopkins University
9:30 am
Break
9:45 am

How do Households Suppress the Price of Tail Risk?

Laurent E. Calvet, SKEMA Business School
Claire Celerier, University of Toronto
Gordon Y. Liao, Circle
Boris Vallee, INSEAD

Discussant:
Ian Dew-Becker, Federal Reserve Bank of Chicago
(this discussion will not be livestreamed)
10:45 am
Break
11:00 am
Panel on the Treasury Market
Moderator:
Wenxin Du, Harvard University and NBER
Panelists:
Michael Fleming, Federal Reserve Bank of New York
Nellie Liang, Brookings Institution
Joshua Younger, Tudor Investment Corporation

(this panel will not be livestreamed)
12:30 pm
Lunch - Kingsman Park Room
1:30 pm

The Economics of Network-Based Deposit Insurance

Shohini Kundu, University of California, Los Angeles
Edward T. Kim, University of Michigan
Amiyatosh Purnanandam, University of Texas at Austin

Discussant:
Eduardo Dávila, Yale University and NBER
2:30 pm
Break
2:45 pm

New Evidence on the Causes of Historical Banking Crises and the Effects of Policy Interventions

Matthew Baron, Georgetown University
Luc Laeven, European Central Bank
Julien Pénasse, University of Luxembourg
Yevhenii Usenko, Massachusetts Institute of Technology

Discussant:
Samuel Hanson, Harvard University and NBER
3:45 pm
Closing remarks and adjourn