well-functioning marketplace will also exist in the future. Market liquidity risk is the risk that the market will function … effects of market liquidity risk on asset pricing, investment management, corporate finance, banking, financial crises … marketplace such as a supermarket or a stock exchange with adequate liquidity. Further, people must have confidence that such a …

provided liquidity against a range of assets during 2008-09. Dealers with lower equity returns and greater leverage prior to … liquidity in explaining dealer behavior. The results suggest that both financial performance and balance sheet liquidity play a …

financial sector overhang may make bailouts tempting, they raise the risk of exacerbating the overhang related to sovereign debt …

In August of 2007, banks faced a freeze in funding liquidity from the asset-backed commercial paper (ABCP) market. We … investigate how banks scrambled for liquidity in response to this freeze and its implications for corporate borrowing. Commercial … syndicated loan packages denominated in dollars. The results point to a funding risk in global banking, manifesting as currency …

In August of 2007, banks faced a freeze in funding liquidity from the asset-backed commercial paper (ABCP) market. We … investigate how banks scrambled for liquidity in response to this freeze and its implications for corporate borrowing. Commercial … syndicated loan packages denominated in dollars. The results point to a funding risk in global banking, manifesting as currency …

incentives both discipline bankers, but with different consequences. Greater use of equity leads to lower ex ante bank liquidity …-optimal capital structure trades off these two costs. With uncertainty about aggregate risk, bank creditors learn from other banks … information about aggregate risk, rather than relying on market signals, can restore efficiency by intervening selectively …

-and-repurchase (repo) contracts. Exemption from an automatic stay in bankruptcy enables financial intermediaries to raise greater liquidity … and induces entry of intermediaries with higher leverage during normal times. This liquidity creation occurs, however, at … aggregate risk …

channel, one bank's capital policy affects the equity value and risk of default of other banks. In a model where such …

focus on individual, rather than systemic, risk of financial institutions. Focusing on systemically important assets and … capable of inducing market discipline and mitigating moral hazard, but also capable of addressing the associated systemic risk …, for instance, due to the risk of fire sales of collateral assets. Furthermore, because of our focus on SIALs, our proposed …