that multiply in extraordinary markets. This relationship has been the source of unexpected risk for banks lending to … that multiply in extraordinary markets. This relationship has been the source of unexpected risk for banks lending to …

risk to unsecured creditors. We show that this triggers more frequent runs by unsecured creditors, even in the absence of … fundamental risk. This effect is separate from the liquidation externality caused by fire sales of seized collateral upon default … always increases it. Regulators need to contain its reinforcing effect on liquidity risk, trading off its role in expanding …

We study a production economy with multiple sectors financed by issuing securities to agents who face capital … tool, we study the introduction of the legacy Term Asset-Backed Securities Loan Facility (TALF). By considering …

We study a production economy with multiple sectors financed by issuing securities to agents who face capital … tool, we study the introduction of the legacy Term Asset-Backed Securities Loan Facility (TALF). By considering …