Photo of Scott F Richard

Scott F Richard

Practice Professor of Finance

Research Interests: asset pricing and the macro-economy. the term structure of interest rates. the global bond market., growth of government

Links: CV

Contact Information

Address: 3257 Steinberg-Dietrich Hall, 3620 Locust Walk, Philadelphia, PA 19104
Office: (215) 898-3004


Scott Richard is currently a Practice Professor of Finance at the Wharton School of the University of Pennsylvania. In November 2008 he retired after 13 years as a Managing Director and Fixed Income Portfolio Manager at Morgan Stanley Investment Management. For the five years prior to MSIM, Scott was a partner at Miller, Anderson and Sherrerd, an investment management firm located in suburban Philadelphia. His other prior experience includes five years at Goldman Sachs & Co. where he was Head of Mortgage Research. Before G.S., Scott was a Professor of Financial Economics at the Graduate School of Industrial Administration (now the Tepper School) at Carnegie-Mellon University from 1972 to 1986. In the academic year of 1986-1987 he was Visiting Professor of Finance at the Sloan School of Management at the Massachusetts Institute of Technology. He currently serves on the Board of the Opera Company of Philadelphia and of the Buck and Doe Conservancy and on the Academic Advisory Board to Kepos Asset Management, a quantitative hedge fund. Scott holds a B.S. degree in Electrical Engineering from M.I.T. and a Doctor of Business Administration from Harvard University.


  • Allan H Meltzer, Scott F Richard (Draft), A Positive Theory of Economic Growth and the Distrbution of Income.    Abstract
  • Scott F Richard (Draft), A Non-Linear Macroeconomic Term Structure Model.    Abstract  Related Materials



  • FNCE894 - Managing Fixed-Income Portfolios

    The goal of this course is to teach you how to manage a real portfolio of Treasury, sovereign, corporate and mortgage bonds. We develop three basic models for the Treasury yield curve, corporate and sovereign credit spreads, and use these models to find value in the bond market. To implement the concepts learned in class, students form teams to manage a paper portfolio using Barclays Point, a state-of-the-art portfolio management system. Your team trades a $1 billion portfolio of bonds for which your goal will be to outperform the Barclays Aggregate Index. You trade real securities at real prices - only the money is fake. We begin by relating the term structure of interest rates to the market's view of the fundamental macroeconomic states of growth, unemployment, and inflation. To do this we need to understand a multifactor term structure model, which extends the Vasicek model you studied in the prerequisite course. Any bond other than a Treasury has an embedded option, either to default, prepay, or in some other way reduce the promised payments to bondholders. Robert Merton was the first to recognize explicitly that any corporate bond can be evaluated by calculating the value of the default option. Merton's model and its extensions are currently the state of the art models used in asset management firms for valuing bonds.