The convention in calculating trading costs in corporate bond markets is to assume that dealers provide liquidity to … provide liquidity in corporate bond markets, and thus, average bid-ask spreads underestimate trading costs that customers … demanding liquidity pay. Compared with periods before the 2008 financial crisis, substantial amounts of liquidity provision have …

The interplay between liquidity and credit risks in the interbank market is analyzed. Banks are hit by idiosyncratic … random liquidity shocks. The market may also be hit by a bad news at a future date, implying the insolvency of some … possible contingency, banks currently long of liquidity ask a liquidity premium for lending beyond a short maturity, as a …

the emergence of the shadow banking system. This paper shows that the largest part of the shadow banking system merely … traditional banking sector might be an additional policy instrument to reduce the build-up of systemic risk in the shadow banking …

disrupting the liquidity or stability of mortgage secondary markets. In the process, the programs have created a new financial … market for pricing and trading mortgage credit risk, which has grown in size and liquidity over time. The CRT programs …

Liquidity backstops have important implications for financial stability. In this paper, we provide a microfoundation … for the important role of liquidity backstops in mitigating runs (or, conversely, the role of the lack of liquidity … financial crisis of 2007-09 provide a natural experiment to identify the value of a liquidity backstop in mitigating runs …

Liquidity backstops have important implications for financial stability. In this paper we provide a microfoundation for … the important role of liquidity backstops in mitigating runs (or, conversely, the role of the lack of liquidity backstops … financial crisis of 2007-09 provide a natural experiment to identify the value of a liquidity backstop in mitigating runs …