The Evolution of a Financial Crisis: Collapse of the Asset-Backed Commercial Paper Market

By Daniel M. Covitz, Nellie Liang, Gustavo A. Suarez. 2012

341 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/f2a6e8a23d4370c808590ebc95e6f25ec8569f7a

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Citations in the corpus

Wholesale Banking and Bank Runs in Macroeconomic Modeling of Financial Crises (2016, methodology): “Our narrative is based on indirect evidence coming from ABX spreads as documented for example in Gorton (2009). n Covitz et al. (2013) provide a detailed description of the run on ABCP programs in 2007.”
Runs on Money Market Mutual Funds (2016, neutral): “Finally, we contribute to the literature on the recent financial crisis, particularly Gorton and Metrick (2012), Covitz et al. (2013), Acharya et al. (2013), and Schroth et al. (2014), who provide evidence of run-like behav- ior by financial intermediaries in the repo and asset-backed commercial…”
Monetary Policy, Financial Conditions, and Financial Stability (2014, background): “Covitz, Liang, and Suarez (2013) show that ABCP programs that held subprime mortgage securities were more likely to be run if they had weaker liquidity and credit support, as commercial paper investors are especially sensitive to being paid in full and on time.”
Understanding the Role of Debt in the Financial System (2015, neutral): “As described in Covitz et al (2013), these events started a run in the assetbacked commercial paper market (ABCP).”
Financialization and Economic Development: A Debate on the Social Efficiency of Modern Finance (2018, neutral): “This is called a repurchase or ‘repo’ transaction (Gorton and Metrick, 2009) or an ‘asset-backed commercial paper’ deal (Covitz et al., 2013).”
Money creation and the shadow banking system (2015, neutral): “These issuers, including securities arbitrage programs, structured investment programs, and collateralized debt obligations, can quickly respond to money demand shocks by financing secondary market purchases of the underlying securitized bonds with short-term ABCP (Covitz, Liang, and Suarez, 2013).”
The Financial Crisis of 2007–2009: Why Did It Happen and What Did We Learn? (2015, neutral): “Source: Federal Reserve Board: Flow of Funds, Bureau of Economic Analysis: National Income and Product Accounts, and Cecchetti (2008). past eighteen years during which personal income and mortgage credit growth were negatively correlated.34 The notion that the housing price bubble and its subsequent”
The Real Effects of Liquidity During the Financial Crisis: Evidence from Automobiles (2017, neutral): “Between 2007 and 2008, short-term funding markets in the United States came to a halt, as money market funds (MMFs) and other traditional buyers of short-term debt fled these markets (Covitz, Liang, and Suarez, 2013).”
A Crisis of Banks as Liquidity Providers: A Crisis of Banks as Liquidity Providers (2015, neutral): “…that the initial subprime shock and lack of information about bank exposures to the shock led investors to lose confidence in their ability to identify low- from high-risk banks leading to a collective withdrawal from deposit accounts (e.g, Gorton (2008), Covitz, Liang, and Suarez (2013)).”