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The Power of Quantitative Easing : Liquidity Channel vs Interest Rate Channel

SHI, Xiang - 2023

This paper disentangles the effectiveness of quantitative easing (QE) into two channels: Liquidity (injecting liquidity … heterogeneity and financial friction, I demonstrate that they affect the power of QE by altering the liquidity and interest rate … channel asymmetrically. Based on the model and calibration, I conclude that the effect of liquidity channel to stimulation …

Persistent link: https://www.econbiz.de/10014257937

A Socioeconomic History of Bankruptcy & Insolvency Laws in India

Hishikar, Saket - 2023

This study traces the long-term history of debt recovery and insolvency laws in India. It tries to identify the socioeconomic factors that led to temporal evolution of such law in in India. The study offers insights into how socioeconomic and other factors interacted in shaping debt recovery...

Persistent link: https://www.econbiz.de/10014257945

The Dynamics of Informed Trading Around Corporate Bankruptcies

Dang, Viet Anh; Dinh Trung Nguyen; Pham, Thu Phuong; … - 2023

We investigate the dynamics of informed trading both before and after corporate bankruptcy announcements. We develop an improved empirical approach for estimating the daily probability of informed trading in a stock, which overcomes challenges in prior literature when dealing with large intraday...

Persistent link: https://www.econbiz.de/10014257983

The Effects of the Libor Scandal on Volatility and Liquidity in Libor Futures Markets

Bachmair, Kilian - 2023

.By studying 3-months LIBOR futures, this paper evaluates the consequences four scandal-related events have had on liquidity and … discontinuation and to draw the relevant policy lessons. One finding is that the liquidity outflows necessitated by the …

Persistent link: https://www.econbiz.de/10014257991

Efficiency of central clearing under liquidity stress

Bardoscia, Marco; Caccioli, Fabio; GAO, HAOTIAN - 2023

We explore the impact of central clearing on the demand for collateral arising from variation margin calls in the derivatives market. We find that the aggregate demand for collateral is not necessarily minimal when all contracts are centrally cleared. Hence, at least in this respect, increasing...

Persistent link: https://www.econbiz.de/10014258128

Debt Covenants after Bankruptcy

Isidro, Helena; Raonic, Ivana - 2023

bankruptcy, lenders compensate the decrease in capital covenants with a greater use of non-accounting and liquidity covenants …

Persistent link: https://www.econbiz.de/10014258175

Modern Pandemic Crises and Default Risk : A Worldwide Evidence

Ho (何), Kung-Cheng (恭政); Huang, Hungyi; Pan, Zikui; … - 2023

This paper examines the relationship between modern health pandemic crises and financial stability. Specifically, it collects data on 250,223 firms in 43 countries (or regions) during five modern pandemic crises, SARS (2003), H1N1 (2009), MERS (2012), Ebola (2014), and Zika (2016), and finds...

Persistent link: https://www.econbiz.de/10014258192

Bond supply, price drifts and liquidity provision before central bank announcements

Pinter, Gabor; Uslu, Semih; Lou, Dong - 2023

find significant changes in the composition of liquidity providers: hedge funds buy a large share of the issue outside pre …-MPC windows, but they shy away from liquidity provision in pre-MPC windows, being replaced by less speculative investors such as … liquidity providers before high-informational events, which can also explain the price drift observed in the data …

Persistent link: https://www.econbiz.de/10014258216

Crypto Custodians in Financial Distress

Skauradszun, Dominik; Kümpel, Jeremias - 2023

The business model of crypto custodians is relatively new. If these companies fall into financial distress, the question arises as to which legal framework is applicable to them. Since jurisdictions such as the US, the Swiss, the German, and recently also the European Union place crypto...

Persistent link: https://www.econbiz.de/10014258294

Signalling and Default : Rothschild-Stiglitz Reconsidered

Dubey, Pradeep K.; Geanakoplos, John - 2003

In our previous paper we built a general equilibrium model of default and punishment in which equilibrium always exists and endogenously determines asset promises, penalties, and sales constraints. In this paper we interpret the endogenous sales constraints as equilibrium signals. By...

Persistent link: https://www.econbiz.de/10014128748