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Craig Furfine
Craig Furfine

FINANCE
Clinical Professor of Finance

Print Overview
Craig Furfine is a Clinical Professor of Finance. Furfine's research involves the study of market microstructure, interbank markets, payment systems and bank capital regulation, having published in scholarly journals including the Journal of Business, the Journal of Monetary Economics and the Journal of Money, Credit, and Banking. Prior to joining the Kellogg School faculty, he was an economic advisor in the economic research department at the Federal Reserve Bank of Chicago. He was a senior economist at the Bank for International Settlements in Basel. Before that, he was an economist at the Board of Governors of the Federal Reserve System, where he served on international work groups responsible for analyzing various payment system issues. Furfine teaches corporate finance, derivatives and real estate finance. He received a PhD in economics from Stanford University.
Print Vita
 
Print Research
Articles
Furfine, Craig. 2007. When is Inter-Transaction Time Informative?. Journal of Empirical Finance. 14(3): 310-332.
Abstract
Furfine, Craig. 2006. Earnings Announcements, private information, and liquidity. Economic Perspectives. 31(1): 39-54.
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Furfine, Craig. 2006. The Costs and Benefits of Moral Suasion: Evidence from the Creditors of Long-Term Capital Management. Journal of Business. 79(2): 593-622.
Abstract
Furfine, Craig. 2005. Discount window borrowing: Understanding recent experience. Chicago Fed Letter 212.
Link
Amato, Jeffery and Craig Furfine. 2004. Are Credit Ratings Procyclical?. Journal of Banking and Finance. 28(11): 2641-2677.
AbstractLink
Furfine, Craig. 2004. Public Disclosures and Calendar-Related Movements in Risk Premiums: Evidence from Interbank Lending. Journal of Financial Markets. 7(1): 97-116.
AbstractLink
Furfine, Craig. 2003. Decimalization and market liquidity. Economic Perspectives.: 2-12.
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Furfine, Craig. 2003. Interbank Exposures: Quantifying the Risk of Contagion. Journal of Money, Credit, and Banking. 35(1): 111-128.
AbstractLink
Furfine, Craig. 2003. Standing Facilities and interbank borrowing: Evidence from the Fed's new discount window. International Finance. 6(3): 329-347.
Abstract
Furfine, Craig. 2002. Interbank Markets in a Crisis. European Economic Review. 46(4-5): 809-820.
AbstractLink
Furfine, Craig. 2002. What's Behind the Liquidity Spread: US Treasury Markets in Autumn 1998. BIS Quarterly Review.: 51-58.
Furfine, Craig. 2001. Bank Portfolio Allocation: The Impact of Capital Requirements, Regulatory Monitoring, and Economic Conditions. Journal of Financial Services Research. 20(1): 33-56.
Abstract
Furfine, Craig. 2001. Banks Monitoring Banks: Evidence from the Overnight Federal Funds Market. Journal of Business. 74(1): 33-58.
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Furfine, Craig. 2001. Do Macro Announcements Still Drive the US Bond Market. BIS Quarterly Review.: 49-57.
Furfine, Craig. 2001. The Reluctance to Borrow from the Fed. Economics Letters. 72(2): 209-213.
Abstract
Furfine, Craig. 2000. Interbank Payments and the Daily Federal Funds Market. Journal of Monetary Economics. 46(2): 535-553.
AbstractLink
Furfine, Craig. 1999. The Microstructure of the Federal Funds Market. Financial Markets, Institutions, and Instruments. 8(5): 24-44.
AbstractLink
Furfine, Craig and Jeff Stehm. 1998. Analyzing Alternative Intraday Credit Policies in Real-Time Gross Settlement Systems. Journal of Money, Credit, and Banking. 30(4): 832-848.
AbstractLink
Working Papers
Furfine, Craig and Richard J. Rosen. 2009. Mergers Increase Default Risk.
AbstractRead
Furfine, Craig. 2009. The liquidity of liquid markets during the financial crisis.
AbstractRead

 
Print Teaching
Full-Time / Part-Time MBA
Finance I (FINC-430-0)

This course counts toward the following majors: Analytical Finance, Finance

This course studies the effects of time and uncertainty on decision making. Topics include discounted cash flow valuation, stock and bond valuation, the term structure of interest rates, bond duration, capital budgeting under certainty and uncertainty, portfolio theory, asset pricing models and efficient markets.

Prerequisites: Knowledge of (a) probability and statistics through linear regression and (b) financial accounting. Requirement (a) may be satisfied with prior or concurrent registration in DECS-434, sufficient previous course work in statistics or attending Finance I statistics tutorials (available fall quarter only). Requirement (b) may be satisfied with prior or concurrent registration in ACCT 430 or sufficient previous course work in financial accounting. MECN-430 is recommended.

To qualify for a Finance I (FINC-430) waiver, you must have passed a comparable course with a grade of A. The type and level of material covered in the course are represented by chapters 1-13 and 23 of the text by Brealey and Myers, Principles of Corporate Finance. You need not request a Finance I waiver to enroll in FINC-440 (Turbo). To help you decide whether you should waive Finance I, take the self-assessment test online at www.kellogg.northwestern.edu/finance/curriculum/finance1waiver.htm.

Derivative Markets I (FINC-465-0)

This course counts toward the following majors: Analytical Finance, Finance.

This course covers the use and pricing of forwards and futures, swaps and options. Specific topics include strategies for speculation and risk management, no-arbitrage pricing for forward contracts, the binomial and Black-Scholes option pricing models and applications of pricing models in other contexts.

Real Estate Finance and Investments (REAL-442-0)

This course counts toward the following majors: Finance, Real Estate Management.

This course is an introduction to the most fundamental concepts, principles, analytical methods and tools useful for making investment and finance decisions regarding commercial real estate assets. The first half of the course will consider investment in fully operational income properties. The second half of the course will consider development investments as well as the major public capital market real estate vehicles, REITs and CMBS. We will study real estate investment using the tools and framework of modern corporate finance and investments, while focusing on the institutional features unique to the real estate industry.