Another Professor of Economics wins Research Fight

Peter Løchte Jørgensen from the Department of Economics and Business won the Danish University Extension’s Research Fight award of 2011 with his presentation on guarantee bonds. It is the second year in a row that a Professor of Economics has taken the honours.

2011.10.13 | Gitte Graversen

With his popular presentation on guarantee bonds for private investors, Peter Løchte Jørgensen outpaced the six other contestants in this year’s battle to propagate research. Last year, the award went to Phillip Schröder, a colleague at the Department of Economics and Business and incidentally also a Professor of Economics, who was a part of the judging panel this year.

Passion for propagation
It was a good mixture of competitive instinct and the joy of propagation, which made Professor Peter Løchte Jørgensen run for the award.

- I have previously taught in mini-courses about investments at the Danish University Extension and I like to disseminate my research findings, so everybody can understand them, regardless of their premises. Additionally, the topic was perfect for this competition and I thought I had a good chance of winning, says Peter Løchte Jørgensen.

Right balance
This passion was clear for all to see when he, in just four minutes, held his presentation for the audience and judging panel, and in the decisive round it was a unanimous decision from the judges to give him four nines on a scale from one to ten. The reasons for this decision included how Peter Løchte Jørgensen successfully managed to find the right balance between disseminating the topic in a way which was relevant and easy to understand, as well as illustrating through a couple of equations that his findings are based on complicated mathematical calculations, thus proving that his research is genuine.

Recommendation: Do not do it!
Peter Løchte Jørgensen succeeded in capturing the attention of the audience regarding the potentially dry research in guaranteed bonds. These bonds are marketed to regular people, who according to him, end up losing money in more than half of the cases.

- Usually, we associate bonds with a reliable investment, but this type is an investment package, where you invest partly in something reliable and partly in a kind of lottery ticket, which is not as reliable, he explains.

Apart from the bonds being complex, one of the main points of his presentation was that they are excessively expensive and lose six percent of their value at the point of purchase. Therefore, he concluded his presentation by advising against investments in this kind of bonds.

The findings derive from the research project “Guarantee bonds for private investors – a good idea?” which Peter Løchte Jørgensen has completed together with Henrik Nørholm, PhD Student and David Skovmand, Assistant Lecturer at Business and Social Sciences.

Read more about Peter Løchte Jørgensen
Read more about the research project Guarantee bonds for private investors – a good idea?
Read more about the Research Fight at the Danish University Extension

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