Crises, Liquidity Shocks, and Fire Sales at Hedge Funds

2012 ◽  
Author(s):  
Nicole M. Boyson ◽  
Jean Helwege ◽  
Jan Jindra
Keyword(s):  
Hedge Funds ◽  
Liquidity Shocks ◽  
Fire Sales

Endogenous Asset Fire Sales and Bank Lending Incentives

2020 ◽  
Vol 10 (04) ◽  
pp. 2150002
Author(s):  
Zhongzhi Song
Keyword(s):  
Cash Holdings ◽  
Bank Lending ◽  
Bank Loans ◽  
Policy Implications ◽  
Liquidity Shocks ◽  
Fire Sales ◽  
The 2008 Financial Crisis ◽  
Lending Decisions ◽  
The Impact ◽  
Capital Injections

This paper examines the impact of banks’ lending incentives on asset prices and bank cash holdings under liquidity risk. Banks make lending decisions based on the tradeoff between costs (fire sales of illiquid assets) and benefits (high returns from bank loans). This paper shows fire sales of assets can be an endogenous outcome, even if banks are endowed with enough cash to meet liquidity shocks. This paper also helps explain why banks have kept a large amount of cash without lending after government capital injections in the 2008 financial crisis. The model further provides policy implications for government intervention.

Crises, Liquidity Shocks, and Fire Sales at Commercial Banks

2012 ◽  
Author(s):  
Nicole M. Boyson ◽  
Jean Helwege ◽  
Jan Jindra
Keyword(s):  
Commercial Banks ◽  
Liquidity Shocks ◽  
Fire Sales

Crises, Liquidity Shocks, and Fire Sales at Commercial Banks

2014 ◽  
Vol 43 (4) ◽  
pp. 857-884 ◽  
Author(s):  
Nicole Boyson ◽  
Jean Helwege ◽  
Jan Jindra
Keyword(s):  
Commercial Banks ◽  
Liquidity Shocks ◽  
Fire Sales

Institutional Investors on the Securities Market

2003 ◽  
pp. 95-101
Author(s):  
O. Khmyz
Keyword(s):  
Financial Crisis ◽  
Capital Market ◽  
Hedge Funds ◽  
Institutional Investors ◽  
Securities Market ◽  
Main Role ◽  
Investment Funds ◽  
Investment Process ◽  
The Capital Market

Acording to the author's opinion, institutional investors (from many participants of the capital market) play the main role, especially investment funds. They supply to small-sized investors special investment services, which allow them to participate in the investment process. However excessive institutialization and increasing number of hedge-funds may lead to financial crisis.

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