, trading costs increase strongly with dealer centrality. Investors with strong liquidity need trade with central dealers and at … times of market-wide illiquidity. Central dealers thus serve as liquidity providers of last resort. …

We describe a new mechanism that explains the transmission of liquidity shocks from one security to another ("liquidity … precise information, a drop in liquidity for one security raises the uncertainty for dealers in other securities, thereby … affecting their liquidity. The direction of liquidity spillovers is positive if the fraction of dealers with price information …

This paper examines the extent to which individual investors provide liquidity to the stock market, and whether they … predict short-term future returns is significantly enhanced during times of market stress, when market liquidity provisions … uncertainty. Despite this high aggregate performance, individual investors do not reap the rewards from liquidity provision …

liquidity provision by hedge funds to noise traders to rationalize our findings, and empirically verify auxiliary predictions of …

, liquidity, and asset prices. Arbitrageurs exploit price discrepancies between assets traded in segmented markets, and in doing … so provide liquidity to investors. A collateral constraint limits their positions as a function of capital. We show that … markets, liquidity in each market generally becomes less volatile, but the reverse may hold for aggregate liquidity because of …

-the-run securities over the entire on/off cycle. Unlike previous studies, by comparing pairs of securities as their relative liquidity … varies over time, we can disregard any cross-sectional differences between the securities. Also, since the liquidity of … Treasury notes varies predictably over time we are able to distinguish between current liquidity and expected future liquidity …

liquidity demanders rather than providers. The effects on security markets were large and persistent: Prices dropped relative to …

We study how actively managed equity mutual funds select the liquidity level of their equity portfolio and the effects … of this selection on performance. We provide evidence of five key determinants of portfolio liquidity: portfolio size …, portfolio concentration, the manager’s trading frequency, investment style, and fee structure. We also show that liquidity is a …

liquidity - but longer-term profits. One source of these profits is that institutions anticipate both earnings surprises and …