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Craig Furfine
Craig Furfine

FINANCE; REAL ESTATE PROGRAM
Clinical Professor of Finance

Print Overview
Craig Furfine is a Clinical Professor of Finance.

Furfine's research studies the functioning of interbank markets, liquidity during the financial crisis, and the performance of commercial real estate mortgages, 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.

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Print Vita
Education
PhD, 1995, Economics, Stanford University, Stanford, California
MA, 1993, Economics, Stanford University, Stanford, California
Economics, 1990, BA, University of California, Berkeley, California, highest departmental honors

Academic Positions
Clinical Professor, Finance, Kellogg School of Management, Northwestern University, 2008-present

Other Professional Experience
Economic Advisor, Federal Reserve Bank of Chicago, 2002-2008
Senior Economist, Bank for International Settlements, 1998-2002
Economist, Federal Reserve Board of Governors, 1995-1998

Conference Presentations

 
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.
Link
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.
Link
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.
Abstract
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. Forthcoming. Mergers Increase Default Risk.
AbstractRead
Cases
Furfine, Craig, Sara Lo and Daniel Kamerling. 2011. Golden Opportunity: Commercial Real Estate Valuation. Case 5-311-507 (KEL595).
Abstract
Furfine, Craig and Jessica Zaski. 2011. Wildcat Capital Investors: Real Estate Private Equity. Case 5-310-510 (KEL553).
Abstract

 
Print Teaching
Full-Time / Part-Time MBA
Real Estate Finance and Investments (Formerly REAL-442-0) (FINC-454-0)
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. We begin the course by considering investment in fully operational income properties. Later, the course takes a close look at real estate capital structure and operating companies. The course concludes with an examination of commercial real estate financing, with an emphasis on public and private mortgage markets. We will study commercial real estate using the tools and framework of modern corporate finance and investments, while focusing on the institutional features unique to the real estate industry. The course provides the intuitive and analytical underpinnings of property valuation, deal structuring, and debt pricing. As such, it is useful for students with industry experience as well as students without a real estate background who may be interested in learning more about real estate as an asset class or those who are contemplating making future real estate investments, both personally and professionally.

Executive MBA
Managerial Finance I (FINCX-430-0)
Managerial Finance I introduces the basic techniques of finance. Topics include discounting techniques and applications; evaluation of capital expenditures; and estimating cost of capital and bond and stock valuation.

Real Estate Finance (FINCX-455-0)
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 course will consider investment in fully operational income properties, with a particular focus on how a property’s financing affects the risks and returns of its investors. 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.