Liquidity and Leverage

By Tobias Adrian, Hyun Song Shin. 2010

2,409 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/70374aa9652224db29be4e30593a879fcd711fda

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Citations in the corpus

Financial Frictions and the Wealth Distribution (2019, positive): “(2017) before the financial crisis of 2007 is linked with i) the increase in financial debt and leverage witnessed during the same period (Adrian and Shin, 2010, and Nuño and Thomas, 2017); ii) low risk-free interest rates; and ii) the heightened fragility of the economy to adverse shocks. This mech”
The Effects of Quantitative Easing on Bank Lending Behavior (2017, positive): “More recent work investigates a risk-taking channel, where reductions in policy rates cause financial institutions to take on larger risks and result in lower risk premia (Adrian and Shin (2010a), Borio and Zhu (2012)).”
Bank Profitability During Recessions (2012, positive): “For example, Adrian and Shin (2010) observe that banks tend to actively manage the amount of total assets on their balance sheets.”
Why do some banks contribute more to global systemic risk? (2018, positive): “…models of Song and Thakor (2007) and Shleifer and Vishny (2010) and the empirical findings of DeYoung and Torna (in press). short-term funding as a major reason for the build-up of systemic risks prior to the crisis (see, e.g., Diamond and Rajan, 2009; Adrian and Shin, 2010; Gorton, 2010).”
The multi-layer network nature of systemic risk and its implications for the costs of financial crises (2015, neutral): “[12] Tobias Adrian and Hyun S.”
What Happened to the Quants in August 2007?: Evidence from Factors and Transactions Data (2010, positive): “Adrian and Shin (2008) document a pro-cyclical relationship between the leverage of U.S. investment banks and the sizes of their balance sheets and explore the aggregate effects that such a relationship can have on asset prices and the volatility risk premium. This empirical observation increases th”
A Macroeconomic Framework for Quantifying Systemic Risk (2019, neutral): “With log preferences, bankers effectively maximize Et[dR̃t] − 1 2V art[dR̃t], which is identical to (5) with γ = 1.”