In a new white paper, Brattle Principal Ioannis Gkatzimas, Senior Associate Ryan Leary, and Research Analyst Musa Isani examine the transition away from USD LIBOR in the US market, detailing USD LIBOR’s downfall and the emergence of its recommended replacement, the Secured Overnight Financing Rate (SOFR). They also discuss a few market-based alternatives to SOFR, the initiatives and legislation designed to address challenges associated with the USD LIBOR transition, and the economic considerations for potential litigation that could arise related to the transition.

The full white paper, “From USD LIBOR to SOFR: A Look at LIBOR’s Exit, SOFR’s Ascendance, Emerging Alternatives, and Economic Considerations for Litigation,” is available below.

View White Paper 

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Using loan level data for France, the authors find that banks most reliant on deposits react to negative monetary policy rates by increasing lending volumes, taking on additional risk, and increasing fee income relative to other banks. Negative rates can encourage the banks that are most reliant on deposits to engage in riskier activities in order to shield profitability. The compositions of banks’ deposits also plays a key role in the transmission of monetary policy rates below zero.

The full article, “Banks, Deposit Rigidity and Negative Rates,” is available below (behind a paywall after May 18, 2023).

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“With his extensive expertise in securities trading, valuation, and causation, Drew is a robust addition to our firm’s Securities team,” said Brattle Interim President & Principal David J. Hutchings. “His testifying experience and ability to help parties understand risk in complex portfolios involving options will be a major asset to Brattle’s clients.”

With more than 15 years of litigation consulting experience at top consultancies, Dr. Roper has served as a testifying expert in several high-profile commercial litigation matters, including as a class action certification expert. He has consulted on matters involving options trading, claims relating to risk management, fixed and variable rate annuities, and more.

Dr. Roper’s consulting experience is supported by a strong background in academia. He has held research and teaching positions focused on corporate finance at the Stanford Law School, the University of Wisconsin-Madison, and Duke University’s Sanford School of Public Policy. His work has been published in several leading economic and financial journals.

“I look forward to continuing to build the Brattle brand in securities litigation,” said Dr. Roper. “With the deep bench of expertise already in place and opportunities to invest going forward, Brattle should be on the top of the short list for clients looking for experienced securities experts that use innovative approaches.”

Before joining Brattle, Dr. Roper founded his own litigation consulting firm Catalyst Economic Consulting, and gained prior experience as an Executive Vice President and a Vice President, respectively, at two global economics consultancies.

To learn more about Dr. Roper, please see his full bio.

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The winners of the 2022 Brattle Group Prize in Corporate Finance are:

First Prize, $25,000: Andreas Fuster, Paul Goldsmith-Pinkham, Tarun Ramadorai, and Ansgar Walther
Predictably Unequal? The Effects of Machine Learning on Credit Markets
The Journal of Finance, February 2022

Distinguished Paper, $10,000: Asaf Bernstein
Negative Home Equity and Household Labor Supply
The Journal of Finance, December 2021

Distinguished Paper, $10,000: Isaac Hacamo and Kristoph Kleiner
Forced Entrepreneurs
The Journal of Finance, February 2022

The Brattle Group has funded this annual award for more than 20 years. These prizes are presented at the AFA’s annual meeting, and this year’s awards were announced at the AFA’s Annual Meeting 2023, which took place January 6–8 in New Orleans, LA. All papers published in issues of The Journal of Finance from the first five issues of the given year, and December of the previous year, are eligible. We congratulate the winners on their achievements!

View a complete list of past winners

More about the AFA

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“These talented individuals provide in-depth expertise to a vast array of clients on matters related to financial services, energy, tax, and more,” shared Brattle President & Principal David Sunding. “In addition, they have made exemplary contributions to mentoring and developing their colleagues, and truly demonstrate the exceptional leadership pipeline we are fortunate to have at the firm.”

Our new Principals:

• Hollie Mason | Practice Leader: Broker-Dealers & Financial Services | Chicago
  An attorney with more than 15 years of experience in the financial industry, Ms. Mason provides expert testimony and consulting services concerning securities litigation and enforcement matters. She has deep knowledge of Financial Industry Regulatory Authority (FINRA) and Securities & Exchange Commission (SEC) rules.
• David McKnight | New York
  Mr. McKnight has over 20 years of experience providing expert testimony and consulting services in matters pertaining to mass torts, securities, finance, valuation, and bankruptcy. In mass tort matters, he has worked with liability forecasts, insurance coverage, and discounted cash flows.
• Albert Metz | New York
  Dr. Metz is a securities and finance expert with deep experience in credit analysis, financial modeling, asset pricing, market efficiency, and event studies. He has consulted on asset pricing, antitrust, mergers and acquisitions, market manipulation, collusion, fixed income securities, and various debt derivatives.
• Christine Polek | Boston
  Ms. Polek serves as a consulting and testifying expert in complex litigation requiring the application of economic, financial, and statistical analysis to legal and regulatory issues – with a focus on valuation, tax controversy, and labor and employment.
• Akarsh Sheilendranath | Boston
  Mr. Sheilendranath is an energy economist with a unique blend of expertise in wholesale electricity markets, electric transmission, and regulatory corporate finance. He specializes in transmission policy, utility investment strategy and planning, large-scale renewable integration, and cost-benefit assessments.
• Anul Thapa | Boston
  Mr. Thapa has over 12 years of experience applying economic and finance principles in complex oil and gas-related litigation, arbitration, and regulatory proceedings. His experience in commercial disputes includes damages estimation, valuation, and pricing related to energy assets and contracts.
• Mike Tolleth | New York
  Mr. Tolleth specializes in the economic analysis of energy markets, with expertise in financial modeling and valuation of energy assets, contracts, and businesses. He supports clients in litigation and arbitration matters and provides expert testimony related to cost of service, rate design, cost of capital, regulatory policy, long-run marginal cost pricing, and market power.

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First Prize, $25,000: Peter M. DeMarzo and Zhiguo He
Leverage Dynamics without Commitment
The Journal of Finance, December 2020

Distinguished Paper, $10,000: Itamar Drechsler, Alexi Savov, and Philipp Schnabl
Banking on Deposits: Maturity Transformation without Interest Rate Risk
The Journal of Finance, February 2021

Distinguished Paper, $10,000: Pat Akey and Ian Appel
The Limits of Limited Liability: Evidence from Industrial Pollution
The Journal of Finance, February 2021

The Brattle Group has funded this yearly award for more than 20 years. These prizes are presented at the AFA’s annual meeting, and this year’s awards were announced at the virtual 2022 ASSA/American Finance Association’s (AFA) Annual Meeting on January 7–9. All papers published in the prior year’s issues of The Journal of Finance are eligible. We congratulate the winners on their achievement!

View a Complete List of Past Winners

More about the AFA

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Media coverage on the trial can be viewed below:

Wall Street Journal coverage

Bloomberg News coverage

Law360 coverage

The post Brattle Experts Involved in Closely Watched AIG Case appeared first on Brattle.

Construction – Quantum Delay & Technical

Principal Darrell Chodorow specializes in analyzing complex business and financial issues in the context of damages quantification, asset valuation, and evaluating the substance of transactions. His work has covered a wide variety of industries, and he has specialized expertise in the energy and natural resources sectors.

Financial Advisory & Valuation – Corporate Tax Experts

Principal Stewart Myers is a Professor of Financial Economics at the MIT Sloan School of Management, past President of the American Finance Association, and co-author of the leading graduate-level textbook on corporate finance.

Financial Advisory & Valuation – Quantum of Damages

Principal Richard Caldwell has experience valuing businesses and financial instruments across a range of industries, from electricity to banking to telecoms, and in a range of settings. He routinely provides economic and financial advice concerning corporate finance and valuation, the pricing of securities and derivatives, and assessments of regulatory issues.

Principal Darrell Chodorow has more than 25 years of experience in commercial damages, valuation, and tax matters.

Principal Dr. José Antonio García is an expert in economic and financial analysis and regularly provides advice on litigation matters as an expert witness.

Principal Andy Harington has over 25 years of diverse experience in business consulting, M&A transaction advisory, and general finance consulting for companies in a variety of industries and ranging in size from large, multi-national public companies to local, privately owned companies.

Principal Carlos Lapuerta is an expert in economic analysis and financial valuation, which he frequently applies to estimate damages in international arbitration proceedings. He has served as an expert witness in international arbitration proceedings, including many disputes between investors and sovereign states over the alleged breach of bilateral investment treaties.

Principal M. Alexis Maniatis has more than 30 years of experience as a consultant providing advice and expert testimony on the application of economics, accounting, and corporate finance in estimating commercial damages, project valuation, and regulation.

Principal Stewart Myers is one of the world’s leading authorities on the theory and practice of finance.

Principal Benjamin Sacks has over 20 years of experience assisting corporations, US government agencies, and foreign governments to develop and present economic and financial testimony in complex litigations and arbitrations.

Financial Advisory & Valuation – Quantum of Damages – Future Leaders

Principal Dr. Florin Dorobantu specializes in valuation and structured finance issues with a focus on international arbitration.

Click here to see the full list of Brattle experts recognized by Who’s Who Legal.

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In the article, “For Grid Expansion, Think ‘Subregionally,’” the authors explain that a subregional transmission strategy is a workable compromise between transmission plans carried out by individual utilities or states and “top down” planning on a nationwide or large regional basis. While subregional transmission planning would require cooperation between states and regions, much like interstate highway systems, planning that starts at this subregional level is less controversial and far more likely to succeed in getting the right amount of transmission built. For more information, please visit The Energy Daily website.

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This topic is particularly timely, as the U.S. Department of Commerce is reviewing a petition that would lead to substantial tariffs on these imports. In response to alleged government subsidies and below cost pricing, petitioners have requested tariffs up to 250% on Chinese-manufactured products. The report examined the impacts that imposing a 50% or 100% tariff would have on the U.S. solar industry through 2014 and found that tariffs will slow the growth in domestic demand for PV systems resulting in substantial job losses. Specifically, a 100% tariff would result in as many as 50,000 net lost jobs in the U.S. over the next three years. Additionally, retaliatory tariffs placed on U.S. exports of polysilicon to China could put nearly 11,000 more American jobs at risk in the first year following tariff imposition. The report, “The Employment Impacts of Proposed Tariffs on Chinese Manufactured Photovoltaic Cells and Modules,” was co-authored by Brattle economists Mark Berkman, Lisa Cameron, and Judy Chang and was commissioned by CASE, a consortium of American-owned and/or American-based companies who are all direct participants in the U.S. solar industry. To download a copy of the report, please visit the CASE website.

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