99 posts on "Liquidity"
February 24, 2014
What Makes a Bank Stable? A Framework for Analysis
Thomas M. Eisenbach and Tanju Yorulmazer One of the major roles of banks and other financial intermediaries is to channel funds from savings into valuable projects. In doing so, banks engage in “liquidity and maturity transformation,” since they finance long-term, illiquid projects while funding themselves with short-term, liquid liabilities. By performing this important role, banks […]
October 16, 2013
Dealer Balance Sheet Capacity and Market Liquidity during the 2013 Selloff in Fixed‑Income Markets
Tobias Adrian, Michael J. Fleming, Jonathan E. Goldberg, Morgan Lewis, Fabio M. Natalucci, and Jason J. Wu Long-term interest rates hit record-low levels in 2012 but have since increased substantially. As discussed in an earlier post, the sharpest increase occurred between May 2 and July 5 of this year, with the ten-year Treasury yield rising from 1.63 percent […]
Posted at 7:02 am in Financial Institutions, Financial Markets, Liquidity | Permalink | Comments (3)
January 9, 2013
Ring‑Fencing and “Financial Protectionism” in International Banking
Some market watchers and academic researchers are concerned about a “Balkanization” of banking, owing to a sharp decline in cross-border international banking activity, and an increased home bias of financial transactions.
Posted at 7:00 am in Banks, Financial Institutions, International Economics, Liquidity, Regulation | Permalink
November 7, 2012
Federal Reserve Liquidity Facilities Gross $22 Billion for U.S. Taxpayers
During the 2007-09 crisis, the Federal Reserve took many measures to mitigate
disruptions in financial markets, including the introduction or expansion of
liquidity facilities.
Posted at 7:00 am in Fed Funds, Financial Markets, Liquidity, Monetary Policy | Permalink | Comments (3)
August 29, 2012
Follow That Money! How Global Banks Manage Liquidity Globally
Banks increasingly move money around the world.
August 20, 2012
The Fed’s Emergency Liquidity Facilities during the Financial Crisis: The CPFF
This is the first post in a series that details the steps taken by the Fed in its role as lender of last resort during the 2007-09 financial crisis.
Posted at 9:48 am in Fed Funds, Financial Markets, Liquidity, Monetary Policy, Nonbank (NBFI) | Permalink
August 8, 2012
The European Debt Crisis and the Dollar Funding Gap
Against the backdrop of the ongoing debt crisis in Europe, the difficulties faced by European banks in borrowing U.S. dollars have attracted increased attention.
Posted at 7:00 am in Banks, Exchange Rates, Fed Funds, International Economics, Liquidity | Permalink | Comments (2)
August 6, 2012
Intraday Liquidity Flows
Transactions denominated in U.S. dollars flow around the clock and around the globe, filling the pipelines that support commerce.
December 19, 2011
When Do Trading Frictions Increase Liquidity?
Economists tend to assume that frictions that limit trading in financial markets reduce liquidity and lower investor welfare.
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