is associated with a rollover risk. This rollover risk either keeps intermediaries from providing liquidity optimally, or …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 …

possibility of bubbles depending on the risk-free rate, uncertainty about market depth, and traders’ degree of leverage. This …

provided liquidity against a range of assets during 2008-09. Dealers with lower equity returns and greater leverage prior to … liquidity in explaining dealer behavior. The results suggest that both financial performance and balance sheet liquidity play a …

-shares of the same fund during the unprecedented liquidity crisis in March 2020. For an average bond or equity mutual fund … collective "dash for cash" by consumers and firms in need of liquidity at the outset of the COVID-19 pandemic was not the source …

liquidity in dollars kept traders from arbitraging away excess profits. Risk factors, instead, are mostly insignificant …. Liquidity factors involve intermediaries cutting back loans to arbitrageurs in order to shrink their balance sheet, and hoarding … liquidity to cover their own funding strains. In addition, it seems that arbitrageurs themselves had insufficient pledge …

, whilst removing credit risk transmission, systematically increase default risk …

We employ a proprietary transaction-level dataset in Germany to examine how capital requirements affect the liquidity … gap - aggregate liquidity declines. Our results are stronger for banks with a higher capital shortfall, for noninvestment …