liquidity risk (redirected fromLiquidity Risks) Liquidity risk Theriskthat arises from the difficulty of selling anassetin a timely manner. It can be thought of as the difference between the "true value" of the asset and the likely price, lesscommissions. ...
In this paper, we explore the banking market competition with the onset of a liquidity shock. Using a simple model of the spatial monopolistic competition, we show that banks hold lower level of liquid assets than the socially desirable level. On the other hand, when the liquidity requirement ...
Banks' liquidity risk naturally arises from certain aspects of their day-to-day operations. For example, banks may fund long-term loans (like mortgages) with short-term liabilities (like deposits). Thismaturity mismatchcreates liquidity risk if depositors withdraw funds suddenly. The mismatch between...
Time horizon and liquidity of investments is often a key factor influencing risk assessment and risk management. If an investor needs funds to be immediately accessible, they are less likely to invest in high risk investments or investments that cannot be immediately liquidated and more likely to p...
Since market liquidity arises endogenously from the diversity of liquidity needs across the investor base, the broader the investor base, the lower the probability of a systemic liquidity shock. We also show how simple modifications in security design can mitigate the impact of such a shock should...
The investor usually is unable to convert an asset into ready cash without giving up capital due to an inefficient market, and therefore at an unusually much lower price. There are two types of liquidity risk. The first is referred to as funding liquidity risk or cash flow risk. The second...
It is often stated that part of this spread is unrelated to credit risk and is due to the lower liquidity of the corporate bonds in the more risky rating classes. Sign in to download full-size image Figure 6.5. Funding liquidity indicators. The figure displays the monthly time series of ...
the urgent liquidation of the securities. Hence, the securities of widely-recognized public companies with high trading volume trade at a premium relative to thinly traded securities from smaller-sized companies with lower trading volume. How to Analyze Balance Sheet Liquidity? The balance sheet ...
Whatisliquidityrisk：流动性风险是什么 Liquidity risk and the current crisis Lasse Heje Pedersen 15 November 2008, VOX What is liquidity? Why is it at the heart of the crisis? How can we fix it? This column explains it all in terms any trained economist can understand.What is liquidity risk...
We find that banks with a stronger exposure to liquidity risk lower their supply of long-term finance, which reduces the long-term investment of connected firms. 展开 关键词: Banking Investment Financial development Central banks G21 O16 O12 E58 ...