This article examines market liquidity in the postcrisis era in light of concerns that regulatory
changes might have reduced dealers' ability and willingness to make markets. We begin …

We show a significant loss in US Treasury market functionality when intensive use of dealer
balance sheets is needed to intermediate bond markets, as in March 2020. Although yield …

The resilience of the US Treasury market is limited by dealer balance sheets that are not
sufficiently large and flexible to effectively intermediate this market in a``dash for cash," as …

A long-standing asset pricing puzzle is that the funding rates in derivatives contracts often
differ from those in cash markets. We propose that the cost of renting intermediary balance …

Monetary policy uncertainty affects the transmission of monetary policy shocks to longer-
term nominal and real yields. For a given monetary policy shock, the reaction of yields is …

Core-periphery trading networks arise endogenously in over-the-counter markets as an
equilibrium balance between trade competition and inventory efficiency. A small number of …

This paper examines whether ETFs are a unique source of corporate bond fragility. Relative
to mutual funds, ETFs cater to high-liquidity-demand investors, facilitate positive feedback …

Drawing from a recent report by the Committee on the Global Financial System, we identify
signs of increased fragility and divergence of liquidity conditions across different fixed …

Distributed ledger technologies (DLTs), such as the blockchain, have the potential to
transform financial markets. From their most visible application in equity issuance and …

We examine the interaction of regulatory reforms and changes in monetary policy in the US
repo market. Using a proprietary data set of repo transactions, we find that differences in …