simple theoretical framework where liability management and liquidity will play a central role in determining CDS levels …: such framework will be also useful to evaluate the impact of monetary policy, in the extent it modifies liquidity supply … a different perspective arguing, by also providing some empirical evidence, that Liquidity, seen as a direct input of …

role for bankruptcy as a provider of liquidity. The Creditors' Bargain theory argues that bankruptcy law should be limited … costs of these rules. We also connect our theory to the use of bankruptcy for financial institutions, where liquidity …Since the outset of the recent financial crisis, liquidity problems have been cited as the cause behind the …

Market liquidity is informative of future corporate defaults but in a nuanced way. A firm's probability of default … increases with market illiquidity only when the firm's funding liquidity is tight and/or solvency position is weak. Such …