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Andrew Granato

@agranato42.bsky.social
630 followers 443 following 285 posts

Assistant Professor at UT Austin School of Law; legal economist. "We are selling to willing buyers at the current fair market price - so that we may survive." Site: law.utexas.edu/faculty/andrew-grana…

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Andrew Granato @agranato42.bsky.social · 01/10/2026
Debuting two new papers at CELS this weekend: Valuation Malleability in Securities Litigation (with Adam Callister) and GRATs as Quasi-Options: Evidence from Corporate Insiders' Estate Planning (with @matthewcpierson.bsky.social). Say hi if you're around!
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Matt Pearce @mattdpearce.com · 25/08/2026
The idea was born after French President Emmanuel Macron and the Saudi crown prince discovered a shared enthusiasm for
"Dragon Ball Z" during Macron's visit to Saudi Arabia in 2025, Macron advisers said.
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Andrew Granato @agranato42.bsky.social · 19/08/2026
In 2036 all news will be about life insurance!
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Brian Galle @bdgesq.bsky.social · 19/08/2026
Thought I could escape reading yet more from the ubiquitous @agranato42.bsky.social but now he's showing up in my basketball news feed, too. Does this guy sleep? www.nytimes.com/athletic/752...
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Andrew Granato @agranato42.bsky.social · 17/08/2026
Excited to announce that Private Credit's State Backstop will be published in @califlrev.bsky.social in 2027! @pranjal-drall.bsky.social and I will be continuing to refine the piece and explore additional aspects of this phenomenon in the coming months.
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Andrew Granato @agranato42.bsky.social · 15/08/2026
It's happening!
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Andrew Granato @agranato42.bsky.social · 11/08/2026
I want to apologize to every faculty member with whom I've ever been frustrated for taking a long time to respond to an email. I'm sorry. I understand now.
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Andrew Granato @agranato42.bsky.social · 08/08/2026
I did! The book finds only quite modest physical movement in response to tax hikes.
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James Fallows Tierney @jamesftierney.bsky.social · 29/07/2026
Brian Leiter wrote about faculty layoffs at my university. leiterreports.com/2026/07/29/i...
leiterreports.com
Illinois Institute of Technology declares “financial exigency” and begins firing faculty, including tenured faculty
Up to one-third of the faculty may be terminated, although in the law school, Chicago-Kent, it appears the number is lower (maybe one-fifth by some accounts). If readers have more details, please e…
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Ingrid Robeyns @ingridrobeyns.bsky.social · 05/08/2026
The New School for Social Reserach in NYC is, essentially, killing itself, killing what it was, killing what it stood for. www.nytimes.com/2026/08/05/n...
nytimes.com
He Had Tenure. The New School Laid Him Off Anyway. (Gift Article)
The professor, a longtime critic of the university, was among 19 educators who lost their positions as the institution navigated financial woes.
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Andrew Granato @agranato42.bsky.social · 05/08/2026
Setting up my fall-semester office hours and I'm tentatively doing half of them open season/half of them with priority to people who sign up in advance for 20-minute Calendly slots. Do profs have advice on this?
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The Capitol Forum @capitolforum.bsky.social · 04/08/2026
Join us on August 6 at 11:00 a.m. ET for a conference call with @agranato42.bsky.social and Pranjal Drall on "Private Credit's State Backstop: How Private Equity Socializes Risk Through Insurers." RSVP: thecapitolforum.com/events/?utm_...
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Andrew Granato @agranato42.bsky.social · 03/08/2026
Pranjal and I talked to The American Prospect about Private Credit’s State Backstop: prospect.org/2026/08/03/a...
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Andrew Granato @agranato42.bsky.social · 31/07/2026
We went on Odd Lots! @pranjal-drall.bsky.social and I on the theoretical case for the PE-backed life insurance "flywheel," the design of the insurance's public backstop, and our concerns with the way this is all playing out. www.youtube.com/watch?v=4UdW...
youtube.com
Why Private Credit Got Entangled With Insurance | Odd Lots
YouTube video by Bloomberg Podcasts
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Andrew Granato @agranato42.bsky.social · 31/07/2026
.@pranjal-drall.bsky.social and I will be on @capitolforum.bsky.social August 6 talking Private Credit's State Backstop. Registration link is here for anyone interested: thecapitolforum.com/events/priva....
thecapitolforum.com
"Private Credit's State Backstop: How Private Equity Socializes Risk Through Insurers" with Andrew Granato and Pranjal Drall - The Capitol Forum
The Capitol Forum will host a conference call with Andrew Granato, Assistant Professor at the University of Texas School of Law, and Pranjal Drall, a J.D.-Ph.D. candidate in Financial Economics at Yal...
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Andrew Granato @agranato42.bsky.social · 27/07/2026
WSJ article: www.wsj.com/finance/regu...
wsj.com
Exclusive | Federal Probe Into Dodgers Owner’s Financial Empire Was Sparked by Whistleblower
Authorities are examining about $16 billion in private-credit deals involving Walter’s insurance companies to determine whether fraud occurred.
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Andrew Granato @agranato42.bsky.social · 27/07/2026
More on the LA Dodgers PE/private credit/life insurance criminal probe. This is the exact sort of issue that @pranjal-drall.bsky.social and I flag: use of an insurer as a privileged issuance vehicle for private credit to other firms of the owner, potentially at policyholder/taxpayer expense.
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Christopher Mims @mims.bsky.social · 25/07/2026
Fresh evidence the private equity firms pouring money into the AI bubble could lead to the insolvency of companies behind life insurance for millions -- in which case we'll all end up paying for the bailout, as we did in 2008: paulkedrosky.com/socializing-...
paulkedrosky.com
Socializing Data Center Financing Risk
There is a strong new paper out about how private socializes risk via the (captive) insurance channel, with implications for data center capex, given the (now) greater than 50% reliance on external fi...
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Carl Quintanilla @carlquintanilla.bsky.social · 25/07/2026
Here’s what Burry has been posting this weekend.
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Jesse Felder @jessefelder.com · 25/07/2026
‘PE-owned life insurers reflect a structural transformation in which an insurer supports a broader asset-management business that is designed to extract value upfront and impose losses on others.’ papers.ssrn.com/sol3/papers....
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Andrew Granato @agranato42.bsky.social · 24/07/2026
I listen to Misbehavin' as a real song like every month, it's so sweet
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Andrew Granato @agranato42.bsky.social · 24/07/2026
It's underrated! I think it maybe didn't get a lot of traction because McBride and Goggins are *such* sociopaths in the show that it's off-putting, but it's so funny
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Andrew Granato @agranato42.bsky.social · 24/07/2026
Private Credit's State Backstop: How Private Equity Socializes Risk Through Insurers is here: papers.ssrn.com/sol3/papers.....
papers.ssrn.com
Private Credit's State Backstop: How Private Equity Socializes Risk Through Insurers
Private equity (PE) firms have acquired large life insurers and loaded their balance sheets with private credit assets that are opaque and difficult for regulat
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Andrew Granato @agranato42.bsky.social · 24/07/2026
Odd Lots newsletter is here: www.bloomberg.com/news/newslet....
bloomberg.com
The Real Reason Behind the Private Credit-Insurance Nexus
Private gains and public losses.
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Andrew Granato @agranato42.bsky.social · 24/07/2026
Thanks Odd Lots and @tracyalloway.bsky.social for highlighting our research on Private Credit's State Backstop!
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Andrew Granato @agranato42.bsky.social · 21/07/2026
SSRN link is here: papers.ssrn.com/sol3/papers.....
papers.ssrn.com
Private Credit's State Backstop: How Private Equity Socializes Risk Through Insurers
Private equity (PE) firms have acquired large life insurers and loaded their balance sheets with private credit assets that are opaque and difficult for regulat
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Andrew Granato @agranato42.bsky.social · 21/07/2026
We go into much, much more detail in the paper, and put forth a menu of options that regulators can undertake to stop this socialization of risk. Our goal is to articulate the dynamics of this regime before there is a crisis that makes us all learn what this is really quickly.
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Andrew Granato @agranato42.bsky.social · 21/07/2026
This insurer-specific dynamic is at the heart of PE's use of insurers as issuance vehicles for private credit. The PE controller can issue private credit in a separate fund and maintain control over which entity (the fund or the insurer) holds it, and on what terms.
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Andrew Granato @agranato42.bsky.social · 21/07/2026
This system is a taxpayer bailout via low-salience tax credits and bizarre, perverse incentives. If a life insurer goes kaput, we collectively pay for it. A high-risk insurance strategy permits PE firms to keep the upside but offload the downside onto taxpayers.
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Andrew Granato @agranato42.bsky.social · 21/07/2026
Insurance has something kind of like that: insurance guaranty funds, where *surviving* insurers must pay to make policyholders of insolvent insurers whole (up to statutory caps). Most states then permit insurers to offset these costs through tax credits over 5 years.
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Andrew Granato @agranato42.bsky.social · 21/07/2026
People may be familiar with deposit insurance: instead of going through normal bankruptcy, banks have a special resolution process designed to make sure that bank depositors have maximal access to their accounts, with legal protection, as fast as possible. A public backstop!
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Andrew Granato @agranato42.bsky.social · 21/07/2026
These are true but incomplete. The missing factor here is the distinctive law of insurance, which places the downside risk of insurer failure at the feet of taxpayers without a macro-prudential financial regulatory scheme to keep large insurers from taking on excessive risk.
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Andrew Granato @agranato42.bsky.social · 21/07/2026
Why? Existing explanations have emphasized (1) synergies in the economic models of PE and life insurance (a stable policyholder base) and (2) valuation-based regulatory arbitrage (convincing regulators that private credit loans aren't actually risky).
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Andrew Granato @agranato42.bsky.social · 21/07/2026
Since ~2010, PE has exploded in the life insurance industry, and now controls hundreds of billions of dollars of this investible capital. A new empirical literature has shown that PE moves this money out of safe, boring assets and into high-yield, high-risk private credit.
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Andrew Granato @agranato42.bsky.social · 21/07/2026
Background: life insurers take in premiums from policyholders. While the insurer has that money, it invests it in financial assets that earn returns and makes money off of the spread. Historically, these assets were quite conservative (like AAA corporate bonds).
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Andrew Granato @agranato42.bsky.social · 21/07/2026
New w/ @pranjal-drall.bsky.social: Private Credit's State Backstop: How Private Equity Socializes Risk Through Insurers. It's about how insurance insolvency, tax, and financial-regulation law have subsidized PE's takeover of life insurance and become the submerged law of private credit.
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Andrew Granato @agranato42.bsky.social · 13/07/2026
Really excited to see that this paper has gone public. One of the most exciting things a paper can do is show you that all sorts of scattered phenomena are actually part of a whole. Link: papers.ssrn.com/sol3/papers....
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Alex Burness @burness.bsky.social · 30/06/2026
To this day, one of the most unbelievable facts we’ve ever published in @boltsmag.org: Over a 40-year period, *80* percent of death row convictions in Louisiana have ended up getting reversed.
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Andrew Granato @agranato42.bsky.social · 24/06/2026
In a tax foreclosure under the Takings Clause, the Court holds, the price of the disputed property achieved at auction is appropriate for valuation of "just compensation" if the auction procedure is fair. My paper: papers.ssrn.com/sol3/papers..... The SC opinion: www.supremecourt.gov/opinions/25p...
papers.ssrn.com
Conflicting Values in Judicial Valuations
Do courts employ finance neutrally and consistently, or do different courts fashion financial tools in court-specific ways? I assemble 20 years (52,000 pages) o
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Andrew Granato @agranato42.bsky.social · 24/06/2026
This is another context in which valuation standards differ depending on underlying substantive law; in other words, the same house would be worth a different amount of money if the legal question was different. I explore this issue in Conflicting Values in Judicial Valuations:
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Andrew Granato @agranato42.bsky.social · 24/06/2026
In Pung vs. Isabella Cty today, the Supreme Court held that the proper valuation method for determining "just compensation" in a foreclosure of property to make up tax debt does not have to be its "fair market value" (what a "willing buyer" and "willing seller" would achieve).
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Andrew Granato @agranato42.bsky.social · 21/06/2026
Link to paper: onlinelibrary.wiley.com/doi/full/10....; link to replication Github: github.com/adamhenrycal...
onlinelibrary.wiley.com
Expert Asymmetry: Evidence From Securities Litigation
Modern litigation often involves two separate, extra-legal features: (1) contingency fee arrangements with the plaintiff-side attorney, and (2) a “battle of the experts” where the outcome of the case...
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Andrew Granato @agranato42.bsky.social · 21/06/2026
Final version is live on the Journal of Empirical Legal Studies website! Why defendant-side expert witnesses get paid systematically more in class actions (and, arguably, all contingency fee litigation) than their plaintiff-side counterparts.
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Andrew Granato @agranato42.bsky.social · 20/06/2026
One of the funnier moments I’ll have in my life!
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Josh Lappen @jlappen1.bsky.social · 19/06/2026
@agranato42.bsky.social's 2017 investigation of the political economy of the Stanford Review remains a true banger of student investigative journalism.
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Ann Monster Lipton @annmlipton.bsky.social · 04/06/2026
not sure if everyone can access this, but I just learned about some dramatic changes to SSRN from Steve Bainbridge's Substack. This is really bad; SSRN has been how I keep up with scholarship in my field from a variety of researchers www.stephenbainbridge.com/p/the-social...
stephenbainbridge.com
The Social Science Research Network Has Jumped the Shark
Significant and unwelcome changes to what had been legal academia's major open source scholarly repository and notice system
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Alison Killing @alisonkilling.bsky.social · 29/05/2026
NEW: Xinjiang has the highest detention capacity in the world, according to FT analysis - enough space for almost 1 in 40 people in the region - more than five years after the Chinese govt announced the camps had closed.
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Andrew Granato @agranato42.bsky.social · 27/05/2026
15 years of entry level law prof hiring:
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Andrew Granato @agranato42.bsky.social · 26/05/2026
Conflicting Values in Judicial Valuations is now forthcoming at the Journal of Empirical Legal Studies! Thanks to the reviewers, discussants, and conference participants who have helped the paper.
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Milan Markovic @profmarkovic.bsky.social · 21/05/2026
AI has genuinely useful applications in law but 1) you need a large knowledge base to use it effectively and 2) law schools need to focus on providing that knowledge base. My worry is future lawyers will trust automated judgments over their own.
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