Abstract

http://ssrn.com/abstract=2206996
 
 

Citations (106)



 
 

Footnotes (41)



 


 



The Hidden Costs and Underpinnings of Debt Market Liquidity


Amar V. Bhide


The Fletcher School of Law and Diplomacy

May 30, 2014

Columbia University Center on Capitalism and Society Working Paper No. 79

Abstract:     
Few non-financial goods are traded in liquid markets because liquidity requires standardization that suppresses information about their differentiating attributes. The need to suppress information similarly limits easily traded financial claims: buyers normally forgo information to secure liquidity only for the debt and equity of high quality issuers. Yet tradable financial claims, most notably securitized small loans extended to borrowers of unexceptional creditworthiness, have expanded dramatically in the last 30 years. I attribute the expansion to public policies that intentionally and unwittingly favor liquidity over information rather than to Schumpeterian technological advances.

Number of Pages in PDF File: 52

Keywords: securitization, financial stability, financial regulation, liquidity, contracting

JEL Classification: G10, G18, G28, G38, K22, N21

working papers series





Download This Paper

Date posted: January 27, 2013 ; Last revised: October 25, 2014

Suggested Citation

Bhide, Amar V., The Hidden Costs and Underpinnings of Debt Market Liquidity (May 30, 2014). Columbia University Center on Capitalism and Society Working Paper No. 79. Available at SSRN: http://ssrn.com/abstract=2206996 or http://dx.doi.org/10.2139/ssrn.2206996

Contact Information

Amar V. Bhide (Contact Author)
The Fletcher School of Law and Diplomacy ( email )
Cabot 505
160 Packard Avenue
Medford, MA 02155
United States
617-229-5050 (Phone)
HOME PAGE: http://www.bhide.net
Feedback to SSRN


Paper statistics
Abstract Views: 1,458
Downloads: 241
Download Rank: 60,235
Citations:  106
Footnotes:  41

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.329 seconds