Further processing options
The value of internal sources of funding liquidity: U.S. broker-dealers and the financial crisis
Saved in:
| Authors and Corporations: | , , |
|---|---|
| Other Authors: | Copeland, Adam [Author] • Martin, Antoine 1969- [Author] |
| Type of Resource: | E-Book |
| Language: | English |
| published: | |
| Series: |
Federal Reserve Bank of New York: Staff reports ; no. 969 (May 2021)
|
| Subjects: | |
| Source: | Verbunddaten SWB Lizenzfreie Online-Ressourcen |
| 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 |