297 posts on "Financial Markets"
October 7, 2015
Changes in the Returns to Market Making
Since the financial crisis, major U.S. banking institutions have increased their capital ratios in response to tighter capital requirements.
Posted at 7:00 am in Financial Institutions, Financial Markets, Regulation | Permalink | Comments (4)
October 6, 2015
Has Liquidity Risk in the Treasury and Equity Markets Increased?
Market participants have argued that market liquidity has deteriorated since the financial crisis.
Has Liquidity Risk in the Corporate Bond Market Increased?
Tobias Adrian, Michael J. Fleming, Or Shachar, Daniel Stackman, and Erik Vogt Second in a six-part series Recent commentary suggests concern among market participants about corporate bond market liquidity. However, we showed in our previous post that liquidity in the corporate bond market remains ample. One interpretation is that liquidity risk might have increased, even as the […]
October 5, 2015
Has U.S. Corporate Bond Market Liquidity Deteriorated?
Commentators have argued that market liquidity has deteriorated in recent years as regulatory changes have reduced banks’ ability and willingness to make markets.
Posted at 11:02 am in Financial Institutions, Financial Markets, Liquidity | Permalink | Comments (4)
Introduction to a Series on Market Liquidity: Part 2
Market participants and policymakers have raised concerns about the potential adverse effects of financial regulation on market liquidity—the ability to buy and sell securities quickly, at any time, at minimal cost.
September 30, 2015
Natural Experiment Sheds Light on the Market Effects of Herding
Pension funds are expected to behave in a patient, countercyclical manner, making the most of low valuations over the business cycle to achieve high returns.
September 1, 2015
A Distributed Version of Repugnance as a Constraint on Markets
The 2012 Nobel Prize in economics was awarded to Alvin E. Roth and Lloyd S. Shapley for their work on matching problems.
August 31, 2015
August 28, 2015
Entry and Exit Leads to Zero Profit for Bitcoin Miners
In a previous post, we discussed bitcoin miners’ incentives to undertake a 51 percent attack given the current condition of the bitcoin market.
Posted at 7:00 am in Financial Markets | Permalink
August 19, 2015
High‑Frequency Cross‑Market Trading in U.S. Treasury Markets
Dobrislav Dobrev and Ernst Schaumburg Third in a five-part series The U.S. Treasury market is one of the deepest and most liquid markets in the world, with significant trading in both Treasury futures and benchmark securities. In this post, we examine the pattern of trading activity in these instruments and document the substantial increase in […]
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