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Table of Contents:

• Machine generated contents note: pt. I Elements of Corporate Liquidity
• 1.Liquidity Risk Defined
• Definitions of Liquidity Risk
• Liquidity, Risk, and the Corporation
• Market Risk, Credit Risk, and Liquidity Risk
• Liquidity risk and the financial crisis of 2007-2008
• The role of liquidity in the crisis
• Lessons from the crisis
• Overview of the Book
• 2.Liquidity and Financial Operations
• Liquidity Operating Requirements
• General Approaches to Liquidity Management
• Financial Imperatives
• External Requirements
• The Liquidity Risk/Return Trade-Off
• Liquidity Profiles Across Industries
• Financial institutions
• Non-financial service companies
• Capital-intensive companies
• Municipalities and sovereigns

• Endogenous Versus Exogenous Liquidity
• 3.Sources of Liquidity
• Sources of Asset Liquidity
• Liquid assets
• Cash and marketable securities
• Receivables
• Inventories
• Fixed assets and intangibles
• Fixed assets
• Intangibles
• Contents note continued: Sources of Funding Liquidity
• Short-term funding markets
• Commercial paper, Euro commercial paper
• Short-term bank facilities
• Payables
• Deposits and repurchase agreements
• Medium/long-term funding markets
• Medium-term notes and Euronote facilities
• Funding agreements and GICs
• Long-term bonds
• Loans
• Equity capital
• Sources of Off-Balance Sheet Liquidity
• Securitization
• Contingent financings
• Leases
• Derivatives
• Amalgamating Liquidity Sources
• pt. II Liquidity Problems
• 4.Funding Liquidity Risk
• Sources of Funding Liquidity Risk
• Unpredictable cash flows
• Corporations
• Financial institutions
• Unfavourable legal or regulatory actions
• Mismanagement
• Negative perceptions/market actions
• Exogenous Considerations
• The Nature of Funding Problems
• Rollover problems
• Lack of market access
• Commitment withdrawal
• Excessive concentrations
• The effects of funding liquidity risk
• Contents note continued: 5.Asset Liquidity Risk
• Sources of Asset Liquidity Risk
• Exogenous Considerations
• The Nature of Asset Problems
• Lack of asset marketability
• Lack of unencumbered assets
• Excessive concentrations
• Misvalued assets
• Insufficient collateralization
• The Effects of Asset Liquidity Risk
• 6.Liquidity Spirals and Financial Distress
• Joint Asset and Funding Risks
• Problems
• Causes
• The Liquidity Spiral
• Problems
• Causes
• Debt investors and banks
• Rating agencies
• Management reaction
• Financial Distress
• Contagion
• 7.Case Studies in Liquidity Mismanagement
• Drexel Burnham Lambert (1990)
• Askin Capital (1994)
• Orange County (1994)
• Long Term Capital Management (1998)
• General American (1999)
• Swissair (2001)
• Enron (2001)
• Northern Rock (2008)
• Lehman Brothers (2008)
• pt. III Managing Liquidity Risks
• 8.Measuring Liquidity Risk
• Common Liquidity Measures
• Liquidity ratios
• Cash flow gaps
• Contents note continued: Financial instrument liquidity measures
• Stress tests
• Stress testing framework
• Market parameters
• Liquidation horizon
• Cash flows
• Asset disposals, secured funding and haircuts
• Unsecured funding
• Covenants and terminations
• Collateral
• Currency exposures
• Event risks and joint scenarios
• 9.Controlling Liquidity Risk
• Governance Structure
• Liquidity risk mandate
• Risk plan
• Financial and human resources
• Management Duties and Responsibilities
• Liquidity Risk Controls
• Asset liquidity controls
• Liquid and fixed asset limits
• Liquid asset limits
• Collateral/pledging limits
• Funding liquidity controls
• Diversified funding limits
• Committed facility limits
• Joint liquidity controls
• Cash flow gap limits
• Balance sheet target limits
• Hybrid ratio limits
• Off-balance sheet controls
• Forward commitments and contingencies
• Other safeguards
• Defensive interval (Minimum survival period)
• Contents note continued: Reserves
• Mark and model verification
• Penalties
• External relationship management
• Liquidity Risk Monitoring
• Asset and funding portfolios
• Off-balance sheet commitments and contingencies
• Forward balance sheet
• Stress scenarios
• General indicators
• Monitoring goals
• Technical capabilities
• 10.Liquidity Crisis Management
• Scope and Focus
• Ex-Ante Market Access
• Defensive Measures
• Recentralization
• Funding management
• Prioritizing funding draw-downs
• Extending liability maturities
• Suspending cash flows
• Asset management
• Risk hedging
• Communications
• Invoking and Terminating the Program
• Disaster Recovery
• Testing the Plan
• 11.New Regulatory Initiatives
• Basel III
• New liquidity measures
• Liquidity coverage ratio (LCR)
• Net stable funding ratio (NSFR)
• Monitoring liquidity risks
• Dodd-Frank Act
• Liquidity Consultation
• Financial Services Authority's Bipru 12
• Contents note continued: Solvency II and Other Insurance Regulations
• 12.Summary: The Future of Active Liquidity Risk Management
• The Micro Role: Best Practices
• Creating a sound governance framework
• Implementing proper measures and reporting
• Using tactical controls
• Developing and implementing a crisis management process
• Performing ongoing reviews
• The Macro Role
• Conducting regular inspections
• Promoting competition
• Avoiding fragmentation
• Minimizing costs
• Harmonizing accounting treatment
• Reinforcing proper capital allocations
• Providing selective lender of last resort support.

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Author/Creator:

Banks, Erik

Languages:

English

Language Notes:

Item content: English

Main Work:

Liquidity risk: managing funding and asset risk [by Banks, E.]

Related Series:

Global financial markets (Houndmills, Basingstoke, England)

Subjects:

Cash management

Liquidity (Economics)

Risk management

Asset-liability management

General Notes:

Includes bibliographical references (pages 294-296) and index.
Description based on print version record.

Physical Description:

1 online resource.

Call Numbers:

HG4028.C45 B363 2014eb

ISBNs:

9781137374400 (electronic bk.)
1137374403 (electronic bk.)
9781137374394 [Invalid]
113737439X [Invalid]

Other Standard Numbers:

[Unknown Type]: 60001869057

OCLC Numbers:

874832405

Other Control Numbers:

EBC1661530 (source: MiAaPQ)
[Unknown Type]: ybp11699663