299 posts on "Financial Markets"
October 9, 2015
The Liquidity Mirage
Market efficiency is often pointed to as a main benefit of automated and high-frequency trading (HFT) in U.S. Treasury markets.
October 8, 2015
Redemption Risk of Bond Mutual Funds and Dealer Positioning
Market participants have recently voiced concerns that bond markets seem to become illiquid precisely when they want to sell bonds.
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
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