Funding Liquidity

The ability of traders or financial institutions to obtain financing, roll over liabilities, or meet margin and collateral requirements.

Why It Matters

Funding liquidity helps explain liquidity spirals, fire sales, margin calls, repo runs, lender-of-last-resort policy, and macroprudential regulation.

A short list of directly relevant archive entries.

2009

Advanced

Markus K. Brunnermeier

Journal of Economic Perspectives

2009

Advanced

Markus K. Brunnermeier and Lasse Heje Pedersen

Review of Financial Studies

2012

Intermediate

Gary Gorton and Andrew Metrick

Journal of Financial Economics

2017

Advanced

Viral V. Acharya, Lasse H. Pedersen, Thomas Philippon, and Matthew Richardson

Review of Financial Studies

1996

Financial Law

518 U.S. 839 (1996)

Government contractual commitments made during thrift supervisory mergers and later regulatory change.