Question : The Macroeconomics of Liquidity in Capital Markets and theCorporate Sector (40 Marks)Liquidity creation has been migrating away from…

Question : The Macroeconomics of Liquidity in Capital Markets and theCorporate Sector (40 Marks)Liquidity creation has been migrating away from traditional supervised depository institutions. Since the 2008-09 financial crisis the migration has gone beyond money markets and broker-dealers within bank holding companies to other nonbank financial entities. Open-ended mutual funds are increasingly important for financing and liquidity provision in corporate bond markets and in other fixed income markets. There is a commensurate increase in the demand for money in mutual funds to help provide liquidity. The corporate sector too has exhibited Striking growth in its appetite to hold liquid assets.You have to discuss the co-movement of credit risk and liquidity risk in the banking sector. To assist you in the completion of this question, use the following structure:a) Review the related research on credit risk and liquidity risk. You may use examples from abroad (1200 words maximum)
Please use intext reference and show your reference lists.







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