We study liquidity conditions in the corporate bond market during the COVID-19 pandemic, and the effects of the … unprecedented interventions by the Federal Reserve. We find that, at the height of the crisis, liquidity conditions deteriorated … "lean against the wind" and bid-ask spreads declined. To study the causal impact of the interventions on market liquidity …

We study the reaction of financial markets to aggregate liquidity shocks when traders face cognition limits. While each …

We study the efficiency of dealers' liquidity provision and the desirability of policy intervention in over …' asset demands that lasts until a random recovery time. In this context, dealers can provide liquidity to outside investors …

monitor markets continuously. We study how limit order markets absorb transient liquidity shocks, which occur when a …

We study the dynamics of liquidity provision by dealers during an asset market crash, described as a temporary negative …, persistence) under which dealers provide liquidity to investors following the crash. We also characterize the conditions under … which dealers incentives to provide liquidity are consistent with market efficiency …