-term investors are sensitive to interest rate movements and supply liquidity, whereas mutual funds, with shorter investment horizon … and benchmark constraints, demand liquidity. Price impact increased post-crisis for all institutions and has remained … higher than the pre-crisis levels, signaling a general decline in bond market liquidity due perhaps to regulatory changes in …

This paper studies the impact of expected issuance fees on market liquidity in the Euro-area government bond market … market. Primary dealers have the incentive to increase liquidity due to competition for issuance fees because lead managers … are selected based on their liquidity provision in the secondary market. We find that the expected issuance fee is …

on the market — or the level of ‘market liquidity premia'. In the model the impact on market liquidity varies for … liquidity risk premia are higher under the new regulations, but also that corporate bond market liquidity is more resilient due …-crisis. Mapping these changes in liquidity premia to GDP, via their impact on the cost of borrowing for corporates in the real economy …

evidence that dealers' inventory financing constraints are a crucial determinant of the costs of their liquidity provision in … component of the effective bid-ask spread. Compared to low volatility bonds, the liquidity provision of high volatility bonds is … alleviates liquidity problems among eligible dealers …

We consider a model in which dealers intermediate trades between clients and provide immediacy, or, market liquidity … dealers' ability to raise external finance and hence to compete aggressively with each other in providing liquidity. To … leverage is therefore endogenous and related to variations in liquidity across otherwise unrelated markets. Our results shed …

This paper examines dealer inventory capacity, or liquidity supply, as a driver of liquidity and expected returns in … the corporate bond market. We identify shocks to aggregate liquidity supply using data on corporate bond yields and dealer … positions. Liquidity supply shocks lead to persistent changes in market liquidity, are correlated with proxies for dealer …

We investigate, for limit order book equity markets, how trading, liquidity provision, and the overall market quality … in one security are influenced by correlated inventory risk exposures of liquidity providers to other securities in their …

We study the fragility of discretionary liquidity provision by major financial intermediaries during systemic events … discretionary liquidity provision greatly affected both net investor demand and auction clearing rates. Importantly, such … discretionary liquidity provision is fragile. As auction dealers suffered losses from other financial markets and faced increasing …