The value of internal sources of funding liquidity: U.S. broker-dealers and the financial crisis

Saved in:

Authors and Corporations:

Caglio, Cecilia (Author), Copeland, Adam (Author), Martin, Antoine (Author)

Other Authors:

Copeland, Adam [Author] • Martin, Antoine 1969- [Author]

Type of Resource:

E-Book

Language:

English

published:

New York, NY Federal Reserve Bank of New York [2021]

Series:

Subjects:

broker-dealers

shadow banking

liquidity risk

repo market

Graue Literatur

Source:

Verbunddaten SWB
Lizenzfreie Online-Ressourcen

Description
Summary:	We use confidential and novel data to measure the benefit to broker-dealers of being affiliated with a bank holding company and the resulting access to internal sources of funding. We accomplish this by comparing the balance sheets of broker-dealers that are associated with bank holding companies to those that are not and we find that the latter dramatically re-structured their balance sheets during the 2007-09 financial crisis, pivoting away from trading illiquid assets and toward more liquid government securities. Specifically, we estimate that broker-dealers that are not associated with bank holding companies both increased repo as a share of total assets by 10 percentage points and also increased the share of long inventory devoted to government securities by 15 percentage points, relative to broker-dealers associated with bank holding companies.
Physical Description:	1 Online-Ressource (circa 44 Seiten); Illustrationen