Corporations. Repurchase Agreements. Right of Stockholders to Object to Their Enforcement

1936 ◽  
Vol 3 (4) ◽  
pp. 665
Keyword(s):  
Repurchase Agreements

scholarly journals A theory of repurchase agreements, collateral re-use, and repo intermediation

2019 ◽  
Vol 33 ◽  
pp. 30-56 ◽  
Author(s):  
Piero Gottardi ◽  
Vincent Maurin ◽  
Cyril Monnet
Keyword(s):  
Repurchase Agreements

scholarly journals Revisiting the concept of liquidity in liquidity preference

2019 ◽  
Vol 44 (3) ◽  
pp. 491-505 ◽  
Author(s):  
James Culham
Keyword(s):  
Market Liquidity ◽  
Price Uncertainty ◽  
Short Term ◽  
Demand For Money ◽  
The Public ◽  
Interest Income ◽  
Outside Money ◽  
Repurchase Agreements

Abstract This paper revisits Keynes’s theory of liquidity preference to emphasise its reliance on liquidity. By clarifying the meaning of ‘liquidity’ in the context of the theory, it is argued that liquidity preference is not based on the demand for money, the most tradable asset, or a theory of bearishness. Instead, liquidity preference represents a demand for price-protected (capital-safe) assets, most directly inside and outside money, but also cash-equivalent quasi-money such as self-liquidating assets and security repurchase agreements (repo). The theory of liquidity preference explains that the public is willing to forgo interest income to hold short-term price-protected assets due to the capital and price uncertainty associated with relying on market liquidity, or how easy it is to convert an asset into money. It follows that the rate of interest is a monetary phenomenon and is determined independently of saving and investment.

Even gradual quantitative tightening raises GDP risks

2019 ◽  
Keyword(s):  
Euro Area ◽  
Commercial Banks ◽  
Large Scale ◽  
Sales Tax ◽  
Quantitative Easing ◽  
Content Type ◽  
Balance Sheets ◽  
Liquidity Provision ◽  
The Us ◽  
Repurchase Agreements

Subject Quantitative easing and GDP. Significance The US Federal Reserve (Fed), Bank of Japan (BoJ) and ECB have all conducted quantitative easing (QE) programmes since 2008, purchasing assets from commercial banks on a large scale and without predefined repurchase agreements. These purchases have swollen the balance sheets of the three largest central banks and provided commercial banks with large liquidity buffers. Impacts The pace of the Fed withdrawing liquidity may slow; if US-China conflict worsens or another shock occurs, the Fed may consider reversing. In the euro-area, there are no new liquidity provisions, at a time when German GDP is weakening and Brexit threatens EU growth. New liquidity-provision plans may be hard for the euro-area to agree; if this is off the table, so are liquidity-withdrawing measures. The BoJ may stop scaling back its bond and ETF holdings if markets suffer; the upcoming sales tax rise will also hit spending.

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