I study a model of market-liquidity provision by levered intermediaries that, besides operating trading desks, run … deposit-taking franchises. Levered intermediaries' heightened incentive to absorb risk helps to counteract liquidity …. However, liquidity provision may also overshoot, leading to unhealthy price bubbles and causing asset origination to become …

Under Basel III rules, banks become subject to a liquidity coverage ratio (LCR) from 2015 onwards, to promote short …-term resilience. We investigate the effects of such liquidity regulation on bank liquid assets and liabilities. Results indicate co …-integration of liquid assets and liabilities, to maintain a minimum short-term liquidity buffer. Still, microprudential regulation …

This paper conducts a horse-race of different liquidity proxies using dynamic asset allocation strategies to evaluate … the short-horizon predictive ability of liquidity on monthly stock returns. We assess the economic value of the out …-of-sample power of empirical models based on different liquidity measures and find three key results: liquidity timing leads to …

We empirically investigate why wholesale funding is fragile by providing the first study of how individual banks borrow … provide more secured loans to replace unsecured lending, which is not consistent with speculative or precautionary liquidity …

ownership relative to private ownership lie in the liquidity of public ownership. While the liquidity of public ownership lets … shareholders trade easily and supply capital at a lower cost, the liquidity-engendered trading also results in stochastic shocks to … higher cost of capital. Thus, capital market liquidity, while being a principal advantage of public ownership, also has a …