Securities Trading when Liquidity Providers are Informed Abstract We study securities trading when liquidity is provided by informed agents—either because dealers have superior access to market information or because informed traders exploit strategies involving limit orders. In the case of informed dealers, we show that dealers and informed traders profit more at the expense of uninformed liqu...

We develop a structural bond valuation model to simultaneously capture liquidity and credit risk. Our model implies that renegotiation in financial distress is influenced by the illiquidity of the market for distressed debt. As default becomes more likely, the components of bond yield spreads attributable to illiquidity increase. When we consider finite maturity debt, we find decreasing and con...

The Value of Liquidity investments and derivatives space, and this paper provides some quantitative insights on the value of liquidity. Abstract We present a game-theoretic example that helps to illustrate the value of liquidity. These insights are applicable to hedge fund investors since hedge funds have different lock-up and redemption terms. This game also shows the danger of relying on intu...

The purpose of this study is to determine the impact assets value added and liquidity stock in context evidence Indonesia relatively different situations conditions. novelty research using net value-added measurements, was conducted Indonesia, two situations, namely 2018-2019 (before corona virus occurred) 2020 (the occurred). contribution fills narrow gap field from perspective Indonesia. popu...

today one of the major questions in the iranian economy is that do liquidity injected into the economy more effected productive activities or speculative activities .this study was conducted to compare the effects of liquidity growth on real sector and assets market bubbles in iranian economy during the period 1994(2)-2012(1). for this purpose, price index of four major assets in iranian econom...