depth, and improved price efficiency.Moreover, slow traders become more competitive in liquidity provision and price …

Banks hold liquid and illiquid assets. An illiquid bank that receives a liquidity shock sells assets to liquid banks in … the market equilibrium is constrained inefficient, with too little liquidity and inefficient hoarding. Our model features … a precautionary as well as a speculative motive for hoarding liquidity, but the inefficiency of liquidity provision can …

We present evidence that the funding liquidity aggregates of U.S. financial intermediaries forecast U.S. dollar … foreign currencies. We provide a theoretical foundation for a funding liquidity channel in a simple asset pricing model where … estimate prices of risk using a cross-sectional asset pricing approach and show that U.S. dollar funding liquidity forecasts …

stock prices, but significantly increased costs of liquidity. In August 2011, the U.S. market experienced a large decline …

observable differences, including rating, financial performance, industry, bond characteristics, liquidity and issuance timing …