X hits on this document

102 views

0 shares

0 downloads

0 comments

11 / 29

2a.k“Fire-sale externalitytytoo big to fail

Assets

Long-term assets

  • -

    mortgages

  • -

    firm loans

-

Low market liquidity

Liabilities

Equity Long-term funding

Short-term funding

  • -

    CP

  • -

    Repo

  • o

    subprime crisis hits

    • o

      equity shrinks, volatility increases

    • o

      short-term financing is harder to obtain No roll over (since margins/haircut widen Sell assets at fire-sale prices

expensive

Not available!

Document info
Document views102
Page views102
Page last viewedFri Jan 20 18:29:57 UTC 2017
Pages29
Paragraphs492
Words1533

Comments