allows banks in different regions to smooth local liquidity shocks by borrowing and lending on a world interbank market. We … second-best world, financial integration can increase the welfare benefits of liquidity requirements … show under which conditions financial integration induces banks to reduce their liquidity holdings and to shift their …

risk factors. Using a global vector autoregressive macroeconomic model accounting for about 80% of world output, we propose … find that full firm-level parameter heterogeneity along with credit rating information matters a great deal for capturing …

Counseling website. We test the role information complexity, uncertainty about earnings, and the default option play. We show …

This paper studies the interaction between fundamental and liquidity for defaultable corporate bonds that are traded in … liquidity, which depends on both the firm fundamental and the time-to-maturity of the bond. Corporate default decisions interact … with the endogenous secondary market liquidity via the rollover channel. A default-liquidity loop arises: Earlier …

liquidity may be related positively to the longer-term probability of default. Our empirical analysis confirms these predictions …

information state of the economy. At each date, in general there is either "good news" (the information state improves), "bad news …" (the information state gets worse), or "no news" (the information state remains the same). When rollover risk is high …. Thus, a small change in information, as measured by a change in the fundamental value, can lead to a "market freeze …