Aug 2026· Finance and Economics Discussion Series· pp. 1-1· 0 citations· 91 references
Abstract
This paper synthesizes the literature on vulnerabilities in government bond-backed repo markets, focusing on the features that contribute to both the fragility and stability of these markets. The literature shows that the same features that enable efficient liquidity provision, including short-term funding, dealer intermediation, extensive collateral reuse, and low haircuts, can also create channels for rapid transmission of stress. The review documents tight linkages between repo and government bond markets, highlighting how repos are key to the build-up of leverage and can propagate stress across funding, cash, and derivatives markets, particularly through dealers and nonbank financial intermediaries such as investment firms, hedge funds, and money market funds. Evidence from recent stress episodes illustrates how these vulnerabilities materialize in practice. The review also examines post crisis regulatory reforms and central bank interventions, identifying how these measures have enhanced market resilience while also creating trade-offs for market dynamics, with implications for liquidity and collateral availability.
This article reviews recent research on monetary policy transmission through banks and the broader financial intermediation sector, and its implications for financial stability. Traditional banks remain fragile due to high leverage and maturity transformation, making them vulnerable to interest rate, credit, and liqu...
Gregor Matvos, T. Piskorski, Amit Seru· Annual Review of Economics· 0 citations
Bankruptcy reallocates assets, labor, and risk across firms and households, yet its consequences extend far beyond the firms and households directly involved. This article reviews empirical and theoretical advances on spillovers from financial distress and bankruptcy—the transmission of financial distress through labor...
B. Iverson, Max Dunbar· Annual Review of Financial E...· 0 citations
This study analyzes the microstructural mechanisms through which the rapidly expanding single-stock leveraged ETFs in the Korean capital market impede the price discovery function and amplify endogenous volatility. Based on a dynamic simulation utilizing the actual market scales of large-cap semiconductor stocks, the r...
Sun-Joong Yoon· Korean Journal of Financial...· 0 citations
The aim of the study is to examine the resilience of financial markets under the pressure of new global challenges and to develop an integrated analytical framework for adaptation mechanisms that can strengthen market stability, liquidity, transparency and shock-absorption capacity. The article analyses how geopolitica...
Ş. Vəliyev· MODELING THE DEVELOPMENT OF...· 0 citations
This paper investigates the determinants of bankruptcy risk among enterprises listed on the Vietnamese stock market, with particular attention to financial resilience and sustainability in the context of global economic transformation. Using data from twenty-eight publicly listed companies between 2010 and 2025, the st...
Ha Thi Nguyen, Thuy Thi Thu Pham, Anh Kieu Nguyen et al.· Tạp chí Khoa học Đại học Côn...· 0 citations
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