How do risky firms with low cash flow finance their liquidity needs? This paper investigates a relatively common, but little-studied type of credit line, for which funds availability is limited by the firm's time-varying asset composition. A "borrowing base" line of credit provides funds as a...

How do opacity and disclosure policies impact the likelihood of debt runs and economicefficiency? I construct a dynamic model where debt yields are endogenous and mappedexplicitly to the degree of transparency, the regulatory disclosure regime and the stateof the economy. I find that: opacity is...

This paper discusses whether financial intermediaries can optimally provide liquidity, or whether the government has a role in creating liquidity by supplying government securities. We discuss a model in which intermediaries optimally manage liquidity with outside rather than inside liquidity:...