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Special Report on

Rollover Risk and Market Freezes∗

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Since its inception in the early nineteenth century, the U.S. commercial paper market has grown to become a key source of short-term funding for major businesses, with issuance averaging over $100 billion per day. In the fall of 2008, the commercial paper market achieved national prominence when increasing market stress caused some to fear that, given its size and importance, the market's failure would sharply worsen the recession. The Department of the Treasury and Federal Reserve enacted programs targeted at providing credit and liquidity to restore investor confidence. The authors review the history of the commercial ...
banking system caused by the overvaluation of assets. It has resulted in the collapse of large financial institutions, the bailout of banks by national governments and downturns in stock markets around the world. In many areas, the housing market has also suffered, resulting in numerous evictions , foreclosures and prolonged vacancies. It is considered by many economists to be the worst financial crisis since the Great Depression of the 1930s. It contributed to the failure of key businesses, declines in consumer wealth estimated in the trillions of U.S. dollars, substantial financial commitments incurred by governments , and a ...
The dark side of bank wholesale funding
surpluses from nonfinancial corporations, households (via money market mutual funds), other financial institutions, etc. Wholesale funds are usually raised on a short%term rollover basis with instruments such as large%denomination ...... [1 ] Acharya V.V., Gale D., and Yorulmazer T., 2008, VRollover Risk and Market. Freezes,V Working Paper, NYU Stern. [2] Acharya V.V., Pedersen L.H., Philippon T., and Richardson M., 2010, VA Tax on. Systemic Risk,V Working Paper, NY Stern. ... market research, surveys and trends
A Global Liquidity Squeeze looms
due to the looming expiry of the ECB's 12-month repos that were instituted in the wake of the 2008 crisis on July 1, euro-area banks have accelerated their selling of all sorts of assets, primarily the bonds of euro-area sovereigns. In the wake of this recent wave of selling, the yield spreads of Belgian, Austrian and French bonds over German Bunds have now also begun to increase by leaps and bounds, and so  have CDS on the bonds of these countries (hence the big recent move higher in Markit's SovX). It appears meanwhile that the ECB is utterly blind to these developments.   As reported  on market research, surveys and trends


FRB: Finance and Economics Discussion Series: Screen Reader ...
The $350 billion contraction in the asset-backed commercial paper (ABCP) market in the last five months of 2007 played a central role in transforming concerns about the credit quality of mortgage-related assets into a global financial crisis. This paper attempts to better understand why the substantial contraction in ABCP occurred by measuring and analyzing runs on ABCP programs over the period from August 2007 through December 2007. While it has been suggested that commercial paper programs, like commercial banks, may be prone to runs, we are the first to conduct a comprehensive empirical analysis of runs in the ABCP market ... industry trends, business articles and survey research
The Federal Reserve's Commercial Paper Funding Facility
$300 billion. About 70 percent of this sharp decline was led by the financial commercial paper ...... “Rollover Risk and Market Freezes.” Unpublished ... industry trends, business articles and survey research
Irish unions agree to four-year strike ban
The Irish Congress of Trade Unions (ICTU)’s public service committee voted last week to formally agree a four-year strike ban, wholesale rationalisations in public services, unknown thousands of “voluntary” job losses and a continued pay freeze. The so-called Croke Park agreement is the worst so far agreed by any union federation in Europe in response to the economic crisis. Some €4 billion cuts, 3 percent of GDP, have been implemented this year alone, €3 billion more are intended in 2011 and 2012 and subsequent years. These cuts are in line with the Fianna Fail/Green Party coalition government’s drive to reduce the public ... market trends, news research and surveys resources
Why Long Term Investors Lose Money In Commodity ETFs (USO, UNG)
Bloomberg published a critical report for anyone who has ever purchased a commodity ETF – especially the US Crude Oil ETF (NYSE:USO) and the US Natural Gas ETF (NYSE:UNG) . The article defines contango, shares real (shocking) experiences, and explains why these funds are not ideal for long-term investing due to the roll-over effect of commodity futures.   I wanted to highlight a few of the most important quotes from the article:   The article begins with a typical investor seeing the plunge in oil prices to the $35 level in early 2009, so the investor calls his broker to buy shares of the crude oil fund (NYSE:USO) – after all, ... market trends, news research and surveys resources


Rollover Risk and Market Freezes
Rollover Risk and Market Freezes. ∗. Viral Acharya. †. London Business School,. NYU-Stern and CEPR. Douglas Gale. ‡. New York University. Tanju Yorulmazer ... technology research, surveys study and trend statistics
Rollover Risk and Market Freezes∗
Rollover Risk and Market Freezes. Abstract. The crisis of 2007-09 has been characterized by a sudden freeze in the market for short-term, secured borrowing . ... technology research, surveys study and trend statistics
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If your company freezes their 401K contributions, what would be ...
Do a 401K rollover to a bank, stop contributing as well since it is probably going to decrease during this recession, or continue to contribute to it anyway? Tell me what you recommend and WHY to get the points... Answerer 1 I would continue to invest, as every stock is on sale at 70-80% off. This sounds like the move that a company makes when it is struggling to keep it's doors open. I would wait and see if the company goes under. Then at that time you can roll your 401K into an IRA. You may find more helpful advice at the following website: Sign in to vote!
December 2005 Archives | Ask MetaFilter
Redesigning an art museum website (content / design / strategy / the whole shebang). What would you expect to see? What would you like to see that they're not doing? What would totally blow your mind? What do you know they'll include that you just don't care about? And, on a slight tangent, best web examples for art museums? Not the content that resonates for you, but rather kind of information and how it was executed. Thanks! I like to pretend that I'm a big networking wiz, but in reality, I don't even have the wits to play one on TV. Either way, I've been looking for something a little more ...