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Credit market freezes in which debt issuance declines dramatically and market liquidity evaporates are typically … bonds declined, and secondary credit markets became highly illiquid. In this paper we analyze liquidity in bond markets … during financial crises and compare two main theories of liquidity in markets: (1) asymmetric information and adverse …
Persistent link: https://www.econbiz.de/10012953727
The UBS- Credit Suisse (CS) merger in March 2023, one of the biggest banking unions in history, was an emergency rescue deal engineered by Swiss authorities to avoid more market-shaking turmoil in global banking. The merger resulted in a significant increase in the combined stakeholder net...
Persistent link: https://www.econbiz.de/10014349670
In this paper, we investigate the damage to real-sector investment spending and corporate financing activities triggered by the failure of three major investment banks during the 2007-09 financial crisis. We find that firms characterized by pre-crisis corporate investment banking relationships...
Persistent link: https://www.econbiz.de/10010410832
We build a commercial credit network, identify the most central economic sectors in terms of commercial debt, and provide a more complete idea of total indebtedness and financial interlinks between firms and banks in Uruguay. "Commerce," "manufacturing," and "transportation, storage, and...
Persistent link: https://www.econbiz.de/10012659012
Financing innovation presents informational and control problems for the financier, and different solutions are used for funding of US companies and universities. In this paper we examine how funding characteristics influenced the change in innovation during the 2007-8 financial crisis for both....
Persistent link: https://www.econbiz.de/10013046438
This study examines the sources of credit risk associated with asset securitizations and whether credit rating agencies and the bond market differ in their assessment of this risk. Measuring credit risk using credit ratings, we find the securitizing firm's credit risk is positively related to...
Persistent link: https://www.econbiz.de/10013092802
In this paper, we examine the changes in innovation by US companies, non-US companies, and US universities during the 2007-8 financial crisis. Our theoretical framework describes their different solutions to the informational and control problems associated with innovation funding, and how a...
Persistent link: https://www.econbiz.de/10013055271
supply as a liquidity shock, we show that liquidity-constrained firms export 4 to 7% less after the 2008-9 trade collapse …. Consistent with liquidity-constrained firms investing less in customer capital, the effects are stronger for sales to new …
Persistent link: https://www.econbiz.de/10014260285