Showing 21 - 30 of 114,500
I model an open-end mutual fund investing in illiquid assets and show that the fund's endogenous cash management can generate shareholder runs even with a flexible NAV. The fund optimally re-builds its cash buffers at time t 1 after outflows at t to prevent future forced sales of illiquid...
Persistent link: https://www.econbiz.de/10012964425
We consider the liquidity shock banks experienced following the collapse of the asset-backed commercial paper market in … the fall of 2007 to investigate whether banks' liquidity condition affect their ability to provide liquidity to … that liquidity shock passed a larger portion of their borrowing costs onto corporations seeking access to liquidity in the …
Persistent link: https://www.econbiz.de/10012940389
than long-term credit. Firms responded by cutting short-term loans for liquidity management purposes and increasing the use … cash and cut investment. Thus, trade credit provides an alternative source of liquidity that can insulate some firms from … bank liquidity shocks …
Persistent link: https://www.econbiz.de/10012902316
The crisis of 2007-2009 has shown that financial market turbulence can lead to huge funding liquidity problems for … liquidity management are modeled in a panel Vector Autoregressive (p-VAR) framework. Orthogonalized impulse responses reveal … that banks respond to a negative funding liquidity shock in a number of ways. First, banks reduce lending, especially …
Persistent link: https://www.econbiz.de/10013118977
I model an open-end mutual fund investing in illiquid assets and show that the fund’s endogenous cash management can generate shareholder runs even with a flexible NAV. The fund optimally re-builds its cash buffers at time t + 1 after outflows at t to prevent future forced sales of illiquid...
Persistent link: https://www.econbiz.de/10013248951
have despite this received scant attention in the credit-line literature. In this paper, I study the liquidity … commercial-paper market during the COVID-19 pandemic as an exogenous shock to the supply of market-provided liquidity. I find … that backup lines provide commercial-paper issuers with reliable liquidity insurance and that banks' liquidity provision …
Persistent link: https://www.econbiz.de/10014301414
role in overcoming liquidity problems of business entities due to difficult and late payments as well as long-term billing …. Businesses face the challenge of addressing liquidity-related financial difficulties, particularly in the context of dynamic … overcome the problem of liquidity of business entities and as a model of financing, especially for small and medium …
Persistent link: https://www.econbiz.de/10011780578
about the role of liquidity, equity, income levels, and payment burden as determinants of mortgage default using a unique … data set of JPMorgan Chase customers with a Chase mortgage and Chase deposit accounts. Our analysis suggests that liquidity … little post-closing liquidity defaulted at a considerably higher rate than borrowers with at least three mortgage payment …
Persistent link: https://www.econbiz.de/10012867260
We study the role of captive finance in the car loan market when manufacturers' liquidity demand increases. Using a new … multi-country dataset on securitized car loans, we show that captive lending enables a liquidity constrained integrated … exploit quasi-exogenous variation in manufacturers' liquidity cost and need following the Volkswagen emissions scandal to …
Persistent link: https://www.econbiz.de/10013239503
-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 …
Persistent link: https://www.econbiz.de/10014482949