Daniel Neuhann

Daniel Neuhann

Institution

University of Texas at Austin

PhD Year

2016

Email

daniel.neuhann@mccombs.utexas.edu

FTG Membership

Member

Website

https://danielneuhann.com

Featured Work

Nov 27, 2025

Daniel Neuhann, Michael Sockin | Working Paper No. 00194-00

Portfolio Regulation of Financial Institutions with Market Power

We examine how portfolio regulations affect risk sharing between financial institutions with market power. Unconstrained access to complete markets permits flexible exploitation of market power and induces inefficient risk sharing. Appropriate portfolio restrictions counteract this, improving liquidity and risk sharing by bundling securities with offsetting strategic incentives. However, excessive regulation can be counterproductive, destroying gains from trade. An application of our theory shows that cross-asset...