Excess cash, trading continuity, and liquidity risk
نویسندگان
چکیده
منابع مشابه
Liquidity Risk in Sequential Trading Networks
This paper studies a model of intermediated exchange with liquidity-constrained traders. Intermediaries are embedded in a trading network and their financial capacities are private information. We characterize our model’s monotone, pure-strategy equilibrium. Agents earn positive intermediation rents in equilibrium. An experimental investigation supports the model’s baseline predictions concerni...
متن کاملAlternative Trading Systems and Liquidity
We appreciate helpful discussions with Jean-Paul Abraham, Jos Schmitt and participants at the 23 rd SUERF Colloquium. We acknowledge financial assistance from FWO-Vlaanderen under contracts G.0302.00 and G.0333.01.
متن کاملExcess Liquidity against Predation
We consider precautionary liquidity holding as counter-strategy for the entrant to protect himself from predation. Threat of predation, even if avoided in equilibrium, affects the financial contract to raise precautionary liquidity and the equilibrium outcome in the product market competition. When the incumbent’s strategy is unverifiable, the entrant with small start-up capital cannot raise la...
متن کاملThe Excess Liquidity of the Open Economy and its Management
The excess liquidity of the open economy has become one main factor influencing the monetary markets, financial markets and even the whole macroeconomic. In era of the post-crisis, many countries have implemented the loose monetary policies, especially the quantitative easing policy in the U.S. which worsened the situation of the excess liquidity. Under this background, it will be more meaning...
متن کاملLiquidity Risk in Sequential Trading Networks: Online Appendix
The pure common-value auction with private budget constraints that we study admits multiple equilibria, which replicate the bid distribution from the monotone, pure strategy equilibrium defined in Section 3. As explained in the main text, a bidder is indifferent among a range of bids. Thus, he has multiple best reply bids and may randomize among them. Provided that the resulting aggregate distr...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Corporate Finance
سال: 2018
ISSN: 0929-1199
DOI: 10.1016/j.jcorpfin.2017.11.005