over faster than domestic assets because the former have desirable liquidity properties, but represent inferior saving …

funds act as liquidity providers. Hedge funds using Lehman as prime broker could not trade after the bankruptcy, and these …-connected hedge funds in turn experienced greater declines in market liquidity following the bankruptcy than other stocks; and, the … effect was larger for ex ante illiquid stocks. We conclude that shocks to traders' funding liquidity reduce the market …

more than long-term credit. Firms responded by cutting their short-term loans for liquidity management purposes and …, firms increase cash and cut investment. Thus, trade credit offers a substitute source of liquidity that can insulate some … firms from bank liquidity shocks …

I consider banks' role in providing funding liquidity (the ability to raise cash on demand) and market liquidity (the … liquid deposits, thus producing funding liquidity on the liability side of the balance sheet. Deposits are less important in … 21st century banks, but funding liquidity from lines of credit and loan commitments has become more important. Banks also …

liquidity and liability management more generally …