Craig Furfine
Craig Furfine

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.

Print Vita
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

Grants and Awards
Chairs’ Core Course Teaching Award, Kellogg School of Management, 2006-2007

Editorial Positions
Associate Editor, Journal of Money, Credit and Banking, 2011-present

Conference Presentations

Print Research
Furfine, Craig. Complexity and Loan Performance: Evidence from the Securitization of Commercial Mortgages. The Review of Corporate Finance Studies. 2(2): 154-187.
Furfine, Craig. 2011. Comment on 'The mechanics of a graceful exit'. Journal of Monetary Economics. 58(5): 432-435.
Furfine, Craig and Richard J. Rosen. 2011. Mergers Increase Default Risk. Journal of Corporate Finance. 17(4): 832-849.
Furfine, Craig. 2007. When is Inter-Transaction Time Informative?. Journal of Empirical Finance. 14(3): 310-332.
Furfine, Craig. 2006. Earnings Announcements, private information, and liquidity. Economic Perspectives. 31(1): 39-54.
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.
Furfine, Craig. 2005. Discount window borrowing: Understanding recent experience. Chicago Fed Letter 212.
Amato, Jeffery and Craig Furfine. 2004. Are Credit Ratings Procyclical?. Journal of Banking and Finance. 28(11): 2641-2677.
Furfine, Craig. 2004. Public Disclosures and Calendar-Related Movements in Risk Premiums: Evidence from Interbank Lending. Journal of Financial Markets. 7(1): 97-116.
Furfine, Craig. 2003. Interbank Exposures: Quantifying the Risk of Contagion. Journal of Money, Credit, and Banking. 35(1): 111-128.
Furfine, Craig. 2003. Standing Facilities and interbank borrowing: Evidence from the Fed's new discount window. International Finance. 6(3): 329-347.
Furfine, Craig. 2003. Decimalization and market liquidity. Economic Perspectives.: 2-12.
Furfine, Craig. 2002. What's Behind the Liquidity Spread: US Treasury Markets in Autumn 1998. BIS Quarterly Review.: 51-58.
Furfine, Craig. 2002. Interbank Markets in a Crisis. European Economic Review. 46(4-5): 809-820.
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.
Furfine, Craig. 2001. Do Macro Announcements Still Drive the US Bond Market. BIS Quarterly Review.: 49-57.
Furfine, Craig. 2001. Banks Monitoring Banks: Evidence from the Overnight Federal Funds Market. Journal of Business. 74(1): 33-58.
Reprinted in:
Liquidity and Crisis, edited by Franklin Allen, Elena Carletti, Jan Pieter Krahnen, and Marcel Tyrell, Oxford, U.K.: Oxford University Press, 2011.
Furfine, Craig. 2001. The Reluctance to Borrow from the Fed. Economics Letters. 72(2): 209-213.
Furfine, Craig. 2000. Interbank Payments and the Daily Federal Funds Market. Journal of Monetary Economics. 46(2): 535-553.
Furfine, Craig. 1999. The Microstructure of the Federal Funds Market. Financial Markets, Institutions, and Instruments. 8(5): 24-44.
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.
Working Papers
Furfine, Craig. 2013. Futures Market Liquidity during the Financial Crisis.
Furfine, Craig. 2012. Complexity as a means to distract: Evidence from the securitization of commercial mortgages.
Furfine, Craig and Mitchell A. Petersen. 2014. The Right of Acquisition: Options in Commercial Real Estate. Case 5-114-001 (KEL819).
Furfine, Craig. 2014. Back to School: Real Estate Development of Off-Campus Student Housing. Case 5-313-511.
Furfine, Craig. 2014. The Search for Property: Institutional Investment in Real Estate. Case 5-413-750.
Furfine, Craig and Mike Fishbein. 2013. The Return of the Loan: Commercial Mortgage Investing after the 2008 Financial Crisis. Case 5-113-005.
Furfine, Craig and Sam Schey. 2012. Working at Workouts: Commercial Real Estate Debt in Distress. Case 5-411-754 (KEL697).
Furfine, Craig, Sara Lo and Daniel Kamerling. 2011. Golden Opportunity: Commercial Real Estate Valuation. Case 5-311-507 (KEL595).
Furfine, Craig and Jessica Zaski. 2011. Wildcat Capital Investors: Real Estate Private Equity. Case 5-310-510 (KEL553).

Print Teaching
Full-Time / Part-Time MBA
Real Estate Finance and Investments (FINC-454-0)

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

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.

Real Estate Finance and Investments II (FINC-455-A)
This course uses case studies to augment student understanding of investment and financing decisions in the commercial real estate industry. The course builds on the foundational course, Commercial Real Estate Finance and Investments I (FINC-454), in three ways. First, it explores additional topics relevant to commercial real estate, including valuing land held for commercial development and the allocation and investment decisions of institutional investors into real estate assets. Second, it adds additional depth to topics introduced in the foundational course with a closer examination of mortgage-backed securities. Finally, the course introduces students to multi-faceted real estate decision making by examining issues involving simultaneous consideration of the concepts taught in both FINC-454 and FINC-455.

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.