support for the "distressed prepayment" theory that very delinquent loans are more likely to prepay than to default and that …

"The Fed's ability to control the federal funds rate stems from its ability to alter the supply of liquidity in the … affect the federal funds rate--the liquidity effect. I find that operating procedure was used to guide daily open market … operations; however, there is little evidence of a liquidity effect at the daily frequency and even less evidence at lower …