Associate Professor of Management
Ph.D., Business Economics, Harvard University, 2010
A.M., Economics, Harvard University, 2008
BSBA, Finance, Washington University in St. Louis, 2003
Incentives for Reckless Investing? How CDO managers contributed to the 2007-09 financial crisis
Collateralized debt obligations (CDOs) and other structured products played a significant role in the credit boom of the early 2000s and the ensuing financial crisis of 2007 to 2009. Contributing to the economic disaster were the actions of a number of CDO collateral managers, who packed their products with inferior components: risky portions of private-label residential mortgage-backed securities. Research by Sergey Chernenko, associate professor in Purdue’s Krannert School of Management, shows why these collateral managers were willing to risk their reputations and select low-quality investments.
Liquidity in the corporate bond market
Cash In or Cash Out? Krannert's Sergey Chernenko discusses liquidity in the corporate bond market