Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/246166 
Year of Publication: 
2021
Series/Report no.: 
ECB Working Paper No. 2589
Publisher: 
European Central Bank (ECB), Frankfurt a. M.
Abstract: 
We explore the ties between bonds and individual dealers formed through home advantage and the persistence of previous underwriting relationships. Building on these connections, we show that the introduction of the leverage ratio for the European banks had a large impact on exposed bonds' liquidity. Moreover, based on these ties, we show that bond mutual fund panic following the 2020 pandemic outbreak affected substantially more mutual funds with the larger exposures to dealer banks' balance sheet constraints.
Subjects: 
Bond liquidity
market-making
capital requirements
leverage ratio
mutual funds
COVID-19
JEL: 
G12
G18
G21
Persistent Identifier of the first edition: 
ISBN: 
978-92-899-4812-8
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.