William Diamond

• William Diamond, Chi Xu, Luigi Falasconi, Collateralized Loan Obligations as Fire-Sale Insulation.
• Rebecca Diamond and William Diamond (2024), Affordability of Owner-Occupied Housing across US Cities, AEA Papers and Proceedings, 2024.
• William Diamond, Current CV.
• William Diamond Current Website (read this instead, most up to date).
• William Diamond and Rebecca Diamond, Racial Differences in the Total Rate of Return on Owner-Occupied Housing (Rej. & R, American Economic Review).
• William Diamond, Tim Landvoigt, German Sanchez Sanchez, Printing Away the Mortgages: Fiscal Inflation and the Post-Covid Boom (R&R, Journal of Financial Economics).
• William Diamond and Peter Van Tassel, Risk-Free Rates and Convenience Yields Around the World (Accepted, Journal of Finance).
• William Diamond (2020), Safety Transformation and the Structure of the Financial System (Journal of Finance, Dec 2020), Journal of Finance.
• William Diamond, Yiming Ma, Zhengyang Jiang, The Reserve Supply Channel of Unconventional Monetary Policy (Journal of Financial Economics, Sept 2024).
• William Diamond and Tim Landvoigt, Credit Cycles with Market Based Household Leverage (Journal of Financial Economics, Nov 2022). Abstract

  We develop a model in which mortgage leverage available to households depends on the risk bearing capacity of financial intermediaries. Our model features a novel transmission mechanism from Wall Street to Main Street, as borrower households choose lower leverage and consumption when intermediaries are distressed. The model has financially constrained young and unconstrained middle-aged households in overlapping generations. Young households choose higher leverage and riskier mortgages than the middle-aged, and their consumption is particularly sensitive to credit supply. Relative to a standard model with exogenous credit constraints, the macroeconomic importance of intermediary net worth is magnified through its effects on household leverage, house prices, and consumption demand. The model quantitatively demonstrates how recessions with housing crises differ from those driven only by productivity, and how a growing demand for safe assets replicates many features of the 2000s credit boom and increases the severity of future financial crises.

• All Research from William Diamond »

Past Courses

• FNCE1000 - Corporate Finance

  This course provides an introduction to the theory, the methods, and the concerns of corporate finance. The concepts developed in FNCE 1000 form the foundation for all elective finance courses. The main topics include: 1) the time value of money and capital budgeting techniques; 2) uncertainty and the trade-off between risk and return; 3) security market efficiency; 4) optimal capital structure, and 5) dividend policy decisions. ACCT 1010 + STAT 1010 may be taken concurrently.

• FNCE6110 - Corporate Finance

  This course serves as an introduction to business finance (corporate financial management and investments) for both non-majors and majors preparing for upper-level course work. The primary objective is to provide the framework, concepts, and tools for analyzing financial decisions based on fundamental principles of modern financial theory. The approach is rigorous and analytical. Topics covered include discounted cash flow techniques; corporate capital budgeting and valuation; investment decisions under uncertainty; capital asset pricing; options; and market efficiency. The course will also analyze corporate financial policy, including capital structure, cost of capital, dividend policy, and related issues. Additional topics will differ according to individual instructors.

• Jacobs Levy Center Research Outstanding Paper Prize for "Risk-Free Interest Rates" (with Jules van Binsbergen and Marco Grotteria), 1970

Knowledge @ Wharton

• Overwhelmed by Too Many Choices When Shopping? Wharton Retail Expert Weighs In, Knowledge @ Wharton - 12/19/2024
• Michael Lee, Oatly North America’s EVP & Executive Creative Director, Knowledge @ Wharton - 12/19/2024
• Why Anchor Institutions Are Vital to Local Economies, Knowledge @ Wharton - 12/17/2024
• Is the American Dream of Homeownership Still Within Reach?, Knowledge @ Wharton - 12/17/2024
• Even Under Trump, AI Governance Is Here to Stay, Knowledge @ Wharton - 12/17/2024
• 2024 Ripple Rewind (Part 2), Knowledge @ Wharton - 12/17/2024
• What Are the Best Countries of 2024?, Knowledge @ Wharton - 12/16/2024
• Your Pride Could Affect Your Workplace Reputation, Knowledge @ Wharton - 12/12/2024
• Samantha Baker, VP of Commerce at theSkimm, Knowledge @ Wharton - 12/12/2024
• NFL Stats & Analysis with Ben Solak, Knowledge @ Wharton - 12/11/2024