Cover -- Contents -- Preface -- Introduction -- 0.1 What is This Book About? -- 0.2 Why Should We Care? -- 0.3 Some Puzzles -- 0.4 The Three Dimensions of Liquidity -- 0.4.1 Market Liquidity -- 0.4.2 Funding Liquidity -- 0.4.3 Monetary Liquidity -- PART ONE: Institutions -- 1 Trading Mechanics...

"The process by which securities are traded is very different from the idealized picture of a frictionless and self-equilibrating market offered by the typical finance textbook. This book offers a more accurate and authoritative take on this process. The book starts from the assumption that not...

Dealers are suppliers of liquidity; in this respect their role is similar to that played by speculators in auction markets. However, dealers are a special kind of speculator, because of the many obligations and privileges conferred upon them. The most obvious constraint on dealers' behaviour is...