-09 financial crisis is often attributed to corporate bond dealers shedding off their inventory, right when liquidity was scarce …, including proprietary trading desks in investment banks, provided liquidity in response to the large selling by clients …. Corporate bond inventory of dealers rose sharply as a result. Although providing liquidity, limits to arbitrage, possibly in the …

market liquidity over time, when dealer balance sheet utilization reaches sufficiently high levels, liquidity is much worse …

fixed issuer effects. Despite the premium pricing, bonds of private companies are no more likely to default or be downgraded …This paper is the first to document the presence of a private premium in public bonds. We find that spreads are 31 … basis points higher for public bonds of private companies than for bonds of public companies, even after controlling for …

This paper studies the relationship between the arrival of potential investors and market liquidity in a search … discouraging new investors from entering (what we call the congestion effect). The equilibrium level of market liquidity depends on … find that diminishing trading costs in our market can impair liquidity and reduce welfare. -- Liquidity ; search …

estimate prices of risk using a cross-sectional asset pricing approach and show that U.S. dollar funding liquidity forecasts … liquidity channel in an intertemporal equilibrium pricing model where the “risk appetite” of dollar-funded intermediaries …We present evidence that the funding liquidity aggregates of U.S. financial intermediaries forecast exchange rate …