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4 posts on "liquidity risk"
February 19, 2016

Did Third Avenue’s Liquidation Reduce Corporate Bond Market Liquidity?

Tobias Adrian, Michael J. Fleming, Erik Vogt, and Zachary Wojtowicz

Tobias Adrian, Michael J. Fleming, Erik Vogt, and Zachary Wojtowicz The announced liquidation of Third Avenue’s high-yield Focused Credit Fund (FCF) on December 9, 2015, drew widespread attention and reportedly sent ripples through asset markets. Events of this kind have the potential to increase the demand for market liquidity, as investors revise expectations, reassess risk […]

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Posted at 7:05 am in Economic History, Financial Institutions, Financial Markets | Permalink
October 6, 2015

Has Liquidity Risk in the Treasury and Equity Markets Increased?

Tobias Adrian, Michael J. Fleming, Daniel Stackman, and Erik Vogt

Market participants have argued that market liquidity has deteriorated since the financial crisis.

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Posted at 7:05 am in Financial Markets, Liquidity | Permalink | Comments (4)
April 18, 2014

How Liquidity Standards Can Improve Lending of Last Resort Policies

Prior to the Great Recession, the focus of bank regulation was on bank capital with little consensus about the need for liquidity regulation.

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Posted at 7:00 am in Financial Institutions, Lender of Last Resort, Liquidity, Regulation | Permalink
April 16, 2014

The Liquidity Stress Ratio: Measuring Liquidity Mismatch on Banks’ Balance Sheets

Liquidity transformation—funding longer-term assets with short-term liabilities—is one of the main functions that banks provide. However, this liquidity mismatch exposes banks to liquidity risk.

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Posted at 7:00 am in Financial Institutions, Liquidity, Regulation | Permalink

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