This paper draws attention to the causal links between the crises that swept financial markets over the past thirty years, and the underlying common denominators, which can be identified with abuses of debt capital markets. This is done by constructing a taxonomy of crises and scandals, and the role played by debt capital markets in the process. While this analysis draws on some of the events underscoring the GFC of 2008, reference is made to other relevant episodes, culminating most recently with the panic of 2020. Critically, this paper highlights two key aspects, namely the relentless growth of debt capital markets, chiefly through the engine of financial innovation, and their prospering in a lightly regulated environment.
About the Speaker:
Vincenzo Bavoso is a senior lecturer in Commercial Law in the Law School, University of Manchester. Before taking up this post he was a research associate in the Tipping Points project at Durham University. This was a multidisciplinary project funded by the Leverhulme Trust where he focused on the global financial crisis in the banking sector. Before then, he held academic appointments at Kingston University, London, and at the University of Manchester, where he also completed his PhD. He holds visiting appointments at the Institute of Advanced Legal Studies, London; the China-EU School of Law, at the China University of Political Science and Law, Beijing; the National University of Singapore; and the Chinese University of Hong Kong. Prior to entering academia he was a legal practitioner, having qualified to the bar in Italy.
His research interests embrace two main strands. Firstly, the broad field of financial regulation and in particular the regulation and practice of capital markets. Secondly, the intersection between corporate law and governance, with particular reference to the regulation of corporate decision-making. He has published widely in the above areas. His work on securitisation and capital markets has been cited by the EU Parliament, the Wall Street Journal, Bloomberg (twice) and S&P Global Markets. His works on the EU Capital Markets Union and on the attendant STS Securitisation Regulation have informed policy-making exercises, among which, Foundation for European Progressive Studies (FEPS), Centre for European Policy Studies (CEPS), European Capital Markets Institute (ECMI), Politico.
He is the director of two LLM courses at Manchester, one focused on the law and practice of securities markets, and another on the regulation of international finance.
At Manchester, Vincenzo is the co-director of the Manchester Centre for Law and Business, is PGR director, and is also co-editor in chief of Law and Financial Markets Review.
His research can be accessed on his SSRN author page.