simple exchange economy with three types of agents: regular stockholders, arbitrageurs and liquidity providers. Regular … increased stock volatility created by arbitrageurs with access to credit lines. Arbitrageurs and liquidity providers are at … least as well off. Optimal liquidity is found to be consistent with the existence of bubbles in stock and bond markets under …

impact on liquidity conditions as measured by bid-ask spreads and inter-dealer order book depth. We further show that the …

This paper provides a theoretical model to explain how securitization affects the overall liquidity and welfare of an …

risk-bearing capacity. Interestingly, we find significant changes in the composition of liquidity providers: hedge funds … buy a large share of the new issue outside pre-MPC windows, but refrain from liquidity provision in pre-MPC windows, and …

portion of banks' excess liquidity (EL) holdings from the negative interest rate of the ECB's deposit facility. The two …