1.

Record Nr.

UNINA9910826445203321

Autore

Hesse Heiko

Titolo

Transmission of Liquidity Shocks : : Evidence from the 2007 Subprime Crisis / / Heiko Hesse, Nathaniel Frank, Brenda Gonzalez-Hermosillo

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2008

ISBN

1-4623-9615-1

1-4527-3394-5

1-4518-7058-2

1-282-84151-3

9786612841514

Edizione

[1st ed.]

Descrizione fisica

1 online resource (23 p.)

Collana

IMF Working Papers

IMF working paper ; ; WP/08/200

Altri autori (Persone)

FrankNathaniel

Gonzalez-HermosilloBrenda

Disciplina

332

Soggetti

Liquidity (Economics) - Econometric models

Subprime mortgage loans - United States - Econometric models

Credit - United States - Econometric models

Financial crises - United States

Banking

Banks and Banking

Banks and banking

Banks

Capital and Ownership Structure

Depository Institutions

Economic & financial crises & disasters

Economics

Finance

Finance: General

Financial Crises

Financial crises

Financial Risk and Risk Management

Financial Risk Management

Financial risk management

Financial services law & regulation

Financing Policy

General Financial Markets: General (includes Measurement and Data)

Goodwill

Investment Decisions



Liquidity risk

Liquidity

Micro Finance Institutions

Mortgages

Portfolio Choice

Stock exchanges

Stock markets

Value of Firms

United States

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Description based upon print version of record.

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

Contents; I. Introduction; II. Transmission of Spillovers during the Subprime Crisis; III. Data; IV. Methodology; V. Results; Figures; 1. Selected Conditional Correlations; 2. Conditional Correlations from Modified DCC Model; VI. Conclusion; References; Appendix Figures; 1. Aggregate Bank Credit Default Swap Rate and Selected Spreads; 2. On-the-Run/Off-the-Run Five-Year U.S. Treasury Bond Spread; 3. United States: Selected Spreads; 4. United States: S&P 500 Stock Market Returns and Credit Default Swap

Sommario/riassunto

We examine the linkages between market and funding liquidity pressures, as well as their interaction with solvency issues surrounding key financial institutions during the 2007 subprime crisis. A multivariate GARCH model is estimated in order to test for the transmission of liquidity shocks across U.S. financial markets. It is found that the interaction between market and funding illiquidity increases sharply during the recent period of financial turbulence, and that bank solvency becomes important.