We revisit and extend the study by Chordia et al. (2014) which documents that, in recent years, increased liquidity has … characterised by positive trends in liquidity, there is no persuasive time-series and cross-sectional evidence for a negative link … between anomalies in market returns and liquidity. Thus, this proxy of arbitrage activity does not appear to be a key factor …

SCF program pools liquidity from suppliers and meanwhile provides immediate payment to suppliers with pressing liquidity … with negative profitability who, however, contribute to the liquidity pool. Inserting the model to an otherwise standard … monetary framework, we show that with higher nominal interest rates, the SCF program emphasizes the liquidity contribution more …

, additional liquidity-related and return forecasting factors. Liquidity factors are obtained from a decomposition of the TED …-sectional fit of the yield curve. Second, we find that financial shocks, either in the form of liquidity or risk premium shocks …