Since the financial crisis, major U.S. banking institutions have increased their capital ratios in response to tighter capital requirements.
Look for our next post on March 23.
Changes in the Returns to Market Making
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 […]
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.
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.
Crisis Chronicles: Defensive Suspension and the Panic of 1857
Sometimes the world loses its bearings and the best alternative is a timeout.
Introducing Our New App: Economic Research Tracker
Our experiment in blogging began four years ago, when we launched Liberty Street Economics.
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.
Same Name, New Businesses: Evolution in the Bank Holding Company
When we think of banks, we typically have in mind our local bank branch that stores deposits and issues mortgages or business loans.
How Much Do Inflation Expectations Matter for Inflation Dynamics?
Inflation dynamics are often described by some form of the Phillips curve.
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