Daniel Neuhann
Institution
University of Texas at Austin
PhD Year
2016
daniel.neuhann@mccombs.utexas.edu
FTG Membership
Member
Website
https://danielneuhann.com
Featured Work
Nov 27, 2025
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...