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Dealer intermediation strategies and implications for market liquidity

This project considers the recent evolution of dealer intermediation strategies in financial markets and implications for market liquidity in light of concerns about regulatory changes raising intermediation costs for large financial institutions. Using newly available transaction-level data tracking individual participants in US corporate bond markets, we characterize dealer intermediation strategies by quantifying inventory holdings and trading patterns for various securities. We assess whether the evolution of trading strategies post-crisis suggests that regulation has permanently or temporarily increased the cost of market-making, and implications for liquidity supply, customer trading costs, and vulnerability to shocks.

Project period: January 2018 - November 2018

PI: Giancarlo Corsetti, Faculty of Economics

End of Award Report - April 2019

Project Update - August 2018

Project Update - April 2018


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NEW VACANCIES - CERF research Assistants/Associates

Dec 19, 2019

We are looking to recruit a Research Assistant/Associate to work at the Cambridge Endowment for Research in Finance (CERF) based in Central Cambridge at the University of Cambridge Judge Business School.

CERF Fellow Dr. Bang Dang Nguyen - paper will be presented at the AFA Annual Meeting 2020 in San Diego

Sep 26, 2019

Political Connections and Firm Value: Evidence from Close Gubernatorial Elections, joint with Q.A. Do (SciencesPo Paris) and Yen-Teik Lee (Curtin University), is accepted and will be presented at the AFA Annual Meeting 2020 in San Diego.

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