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Liquidity and Financial Operations

  • Erik Banks
Part of the Finance and Capital Markets Series book series (FCMS)

Abstract

With some background on liquidity and its associated risks, we are now prepared to review the role of liquidity in financial operations. By examining concepts related to the operating environment we come to understand the importance of liquidity from an internal and systemic perspective, which will be useful when we consider liquidity-induced problems in Part II of the book. In this chapter we explore liquidity operating requirements, the liquidity risk/return trade-off, liquidity characteristics across industries, and endogenous versus exogenous liquidity.

Keywords

Cash Flow Financial Institution Mutual Fund Hedge Fund Financial Distress 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Erik Banks 2005

Authors and Affiliations

  • Erik Banks

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