Craig Merrill Vita

Brigham Young University ¥ W437G TNRB ¥ Provo, UT 84602

Phone: (801) 422-4782 ¥ Fax: (801) 422-0513 ¥ E-mail: Craig_Merrill@byu.edu

 

Education

á        Ph.D.   University of Pennsylvania, Insurance and Finance, 1994

á        M.A.    University of Pennsylvania, Insurance and Finance, 1992

á        B.A.     Brigham Young University, Economics, 1989

Minors in Statistics and Japanese

 

Academic Experience

á        2007 – Present    Professor, Brigham Young University, Provo, UT

á        2000 – 2007          Associate Professor, Brigham Young University, Provo, UT

á        1993 – 2000          Assistant Professor, Brigham Young University, Provo, UT

á        1997                        Visiting Professor, Georgia State University, Atlanta, GA

á        1991 – 1993         Research Assistant, University of Pennsylvania, Philadelphia, PA

á        1988 – 1989          Instructor, Brigham Young University, Provo, UT

 

Honors and Awards

á        Fellow, Wharton Financial Institutions Center, 2006 – present

á        Grant Taggart Fellow of Insurance, Risk Management and Financial Services, Brigham Young University, 1993 – 2008

á        Best Paper of 2002, North American Actuarial Journal

á        BYU Finance SocietyÕs Outstanding Professor Award for 2000 – 2001

á        Graham and Dodd Award of Excellence, presented by the Association for Investment Management and Research in recognition of an outstanding feature article in the Financial Analysts Journal, 1998

á        LECG Research Fellow, LECG, Inc. New York, NY, 1998

á        Kemper Foundation Grant, Brigham Young University, 1997

á        Summer Research Grant, Brigham Young University, 1994

á        Huebner Foundation Fellowship, University of Pennsylvania, 1989 – 1993

á        Rodney L. White Center Grant For Financial Research, 1991 – 1992

 

Publications in Peer Review Journals

á        Corporate Social Responsibility and the Risk Management Perspective: An Empirical Test and Theoretical Extension, with Paul Godfrey and Jared Hansen, Forthcoming, Academy of Management Journal.

á        The U.S. Treasury Buyback Auctions: The Cost of Retiring Illiquid Bonds, with Bing Han and Francis Longstaff, Journal of Finance, Dec. 2007.

á        Risky Loss Distributions and Modelling the Loss Reserve Pay-out Tail, with J. David Cummins and James B. McDonald, Review of Applied Economics, Vol. 3, No. 1, 2007.

á        Real and Illusory Value Creation by Insurance Companies, with David F. Babbel, Journal of Risk and Insurance, March 2005. Lead article.

á        The Effect of Transaction Size on Off-the-Run Treasury Prices, with David Babbel, Mark Meyer, and Meiring de Villiers, Journal of Financial and Quantitative Analysis, September 2004.

á        Fair Value of Liabilities: The Financial Economics Perspective, with David Babbel and Jeremy Gold, North American Actuarial Journal, January 2002. Lead Article, Awarded best paper of 2002.

This article was also published as Chapter 1 in Asset and Liability Management Tools: A Handbook for Best Practice, edited by Bernd Sherer, Risk Books, London, 2003.

á        A Note on the Solution to a Three-Factor Affine Term Structure Model, with Kabir Dutta, Journal of Fixed Income, December, 1999.

á        Economic Valuation Models for Insurers, with David F. Babbel, North American Actuarial Journal, July 1998. Lead Article.

á        Discussion of ÒTwo Paradigms for the Market Value of Liabilities.Ó North American Actuarial Journal, October 1997.

á        A Response to ÒTime Diversification and Option Pricing Theory: Another Perspective,Ó with Steven Thorley, Journal of Portfolio Management, Summer 1997.

á        Default Risk and the Effective Duration of Bonds, with David F. Babbel and William Panning. Financial Analysts Journal, January / February 1997. Received a Graham and Dodd Award of Excellence.

This article was translated and published in the Security Analysts Journal of Japan, October 1998, Vol. 36, No 10.

á        Interest-Rate Option Pricing Revisited, with David Babbel. Journal of Futures Markets, December 1996, Vol. 16, No. 8.

á        Teaching Interest Rate Contingent Claims Pricing, with David F. Babbel. A new pedagogical approach to teaching interest rate contingent claims pricing. Journal of Financial Education, Fall 1996. Lead article in peer review section of this journal.

á        Time Diversification: Perspectives from Option Pricing, with Steven Thorley. Using option pricing methodology to evaluate risk in equity investments for different investment horizons. Financial Analysts Journal, May/June 1996. Lead article.

 

 

Work Under Review

á        Rational Decumulation, with David F. Babbel, under review at the American Economic Review.

Other Publications

(The following are not blind review publications. Any review is noted.)

á        Investing Your Lump Sum at Retirement, written with David F. Babbel, Wharton Financial Institutions Center, Policy Series, 2007.

á        Fair Value of Liabilities: The Financial Economics Perspective, written with David F. Babbel and Jeremy Gold, first chapter in Asset and Liability Management Tools: A Handbook for Best Practice, Risk Books, London, 2003.

á        The Bullet GIC as an Example, written with David Babbel and Jeremy Gold, Risks and Rewards, February, 2001.

á        Default Risk and Effective Duration, presented at the AIMR seminar, Frontiers in Credit-Risk Analysis: A Fixed-Income Conference, and published in a proceedings book, 2000.

á        The Ultimate Black Box, written with David Babbel and Algis Remeza, presented at a New York University, Salomon Center conference and printed as a chapter in Fair Value of Insurance Business, 2000.

á        Toward a Unified Valuation Model for Life Insurers, written with David Babbel and published in Changes in the Life Insurance Industry: Efficiency, Technology and Risk Management, Kluwer, Norwell, MA, 1999.

á        Valuing Interest-Sensitive Financial Instruments, a technical monograph written with David F. Babbel, Frank Fabozzi Publishers, 1996. (Reviewed by a panel of investments experts.) This monograph has been designated as required reading for the Associate of the Society of Actuaries designation exams.

á        Duration of Risky Bonds, with David Babbel and William Panning, presented at New York University, Salomon Center, and published as a chapter in Financial Dynamics of the Insurance Industry, Irwin, 1995. (Blind Conference Review)

á        A slightly modified version of this paper was published as a working paper in the Financial Sector Analysis Series, World Bank, September, 1995.

á        Generating Stochastic Interest Rate Scenarios, invited presentation published in paper form in The Record of the Society of Actuaries, Vol. 21 No. 4, 1996.

á        Option Pricing Mathematics, invited presentation published in paper form in The Record of the Society of Actuaries, Vol. 21 No. 1, 1996.

 

Presentations and Seminars

á        Asset/Liability Management for Insurers, KPMG/Wharton Executive Education seminar, Wharton School, Philadelphia, 2002-2006.

á        Quantitative Tools for Asset/Liability Management, Financial Risk Management Workshop, Milan, Italy, 2006.

á        Advanced Asset/Liability Management for Life Insurers, Society of Actuaries and Wharton School, Philadelphia, 2001.

á        Fair Value of Liabilities, Bowles Symposium, Georgia State University, Atlanta, 2001.

á        New Thinking at the Business Schools: Financial Valuation of Insurance Liabilities, presented at the investment actuaries symposium, 2000.

á        A 3+N-Factor Model of the Term Structure of Interest, with Closed-Form Solutions, with D. Babbel and A. Remeza, presented at the American Risk and Insurance Association annual meeting, 2000.

á        Financial Modeling Integration, panel presentation at the Society of Actuaries Annual Meeting in San Diego, 2000.

á        The Ultimate Black Box, written with David Babbel and Algis Remeza, presented at the New York University, Salomon Center conference in Fair Value of Insurance Business, 1999.

á        Economic Valuation of Insurance Liabilities, presented in a plenary session of the American Risk and Insurance Association annual meetings, Vancouver, BC, 1999.

á        Default Risk and Effective Duration, presented at Frontiers in Credit-Risk analysis: A Fixed-Income Conference and sponsored by the AIMR in Chicago, 1999.

á        Toward a Unified Valuation Model for Life Insurers, written with David Babbel and presented at the New York University, Salomon Center conference Changes in the Life Insurance Industry: Efficiency, Technology and Risk Management, 1998.

á        Financial Valuation of Insurance Liabilities, presented to the Academy of Actuaries task force on fair valuation of liabilities, New York, 1998.

á        Financial Risk Management, presented at the American Risk and Insurance Association meetings in San Diego, 1997. Plenary session.

á        Products Liability Loss Distributions and Liability Insurance Pricing, presented at University of Minnesota, faculty seminar, 1996.

á        Mathematics of Option Pricing, presented at the Society of Actuaries meetings in Orlando, 1996. This was a day-long extension to the presentation in Boston, 1995.

á        Generating Stochastic Interest Rate Scenarios, member of panel at the Society of Actuaries meetings in Boston, 1995.

á        Option Pricing Mathematics, presented at the Society of Actuaries meetings in New Orleans, 1995.

á        Duration of Risky Bonds, with David Babbel and William Panning, presented at New York University, Salomon Center, Financial Dynamics of the Insurance Industry, 1995.

á        Optimal Social Security Pension Benefits With Heterogeneous Incomes, with Paul D. Thistle, presented at the Southern Economic Association meeting, Orlando FL., 1994.

á        Heterogeneous Incomes and the Design of Social Security Programs, with Paul D. Thistle, presented at the American Risk and Insurance Association meetings, Washington D.C., 1992 and at a Georgia State University Faculty Seminar, 1994.

á        Moonlighting and Deductibles: A Market-based Solution to the Problem of Insurance Contract Purchase Non-Observability, presented at the American Risk and Insurance Association meetings, Washington D.C., 1992 and at a Brigham Young University, Faculty Seminar, 1993.

 

Professional Service

Committee Assignments

á        American Academy of Actuaries task force on fair value of liabilities, 1999 – 2001

á        Awards Committee of the American Risk and Insurance Association, 1998 – 2001

á        Les B. Strickler Innovation in Teaching Award Committee, American Risk and Insurance Association, 2000.

á        Strategy Committee of the American Risk and Insurance Association, 1998 – 99

á        Program Committee of the American Risk and Insurance Association, 1998 – 99

á        Chairman, Insurance, Risk Management and Financial Services Faculty Committee, Brigham Young University, 1993 – Present

á        Joint SoA/CAS Working Group on Course 2, Society of Actuaries, 1996

á        Program Committee, Financial Management Association, 1995 – 96

á        Program Committee, Financial Management Association, 1994 – 95

á        Journal and Awards Committee, American Risk and Insurance Association, 1994 – 95

á        Program Committee, American Risk and Insurance Association, 1994 – 95

 

Discussant

á        American Finance Association, 1996

               Francisco Delgado, Optimal Exercise of Call Provision on Bonds

á        American Risk and Insurance Association, 1995

               Moderator of Plenary Session on Corporate Risk Management

á        American Risk and Insurance Association, 1994

David Cummins and David Sommer, Prices, Capital, and Risk in Property-Liability Insurance Markets

á        Financial Management Association, 1994

Arthur Hogan and Samuel Cox, Life Insurer Risk-Based Capital: An Option Theoretic Approach

á        Financial Management Association, 1994

Duane Stock and John Hu, The Impact of Junior Debt Upon the Systematic Risk of Senior Debt

á        Financial Management Association, 1994

Duane Stock, Par Coupon Yield Curves for Callable Bonds and Amortizing Instruments

Reviewer

á        Journal of Risk and Insurance

á        Journal of Futures Markets

á        North American Actuarial Journal

á        The Financial Review

Areas of Interest

Research

á        Fixed income securities and derivatives

á        Asset-liability management

á        Applications of financial pricing to insurance liabilities

Teaching

á        Finance theory in MBA core

á        Corporate risk management

Professional Affiliations

á        American Finance Association

á        American Risk and Insurance Association

á        Risk and Insurance Management Society