The FDIC’s Center for Financial Research and the JFSR invite submissions for the 2007 Fall Research Conference to be held in Arlington, Virginia Thursday, September 20, and Friday, September 21, 2007.
The conference organizers encourage the submission of papers on topics related to liquidity and liquidity risk in banks and financial markets. A growing body of research finds that liquidity–or the lack thereof—is correlated across markets and financial instruments. Many believe that liquidity is a systematic factor that is priced when investors value securities and financial contracts. Although liquidity is a positive attribute of an instrument or market, some have suggested that there can be too much liquidity, and excess liquidity ultimately can destabilize financial markets. Banks clearly play an important role in providing liquidity to financial markets and the economy, but this role has evolved over time. Some observers would argue that this ability reflects government safety nets, while others believe that banks are a natural source of liquidity (e.g. J.P. Morgan in the panic of 1907). The conference seeks to explore topics related to liquidity including:
- Liquidity, asset prices, and financial fragility
- Measurement of liquidity in equity, fixed income, and derivatives markets
- Origin of liquidity shifts during market downturns
- Sustainability of liquidity
- Impact of financial engineering, structured finance, and over-the-counter derivatives on liquidity
- Synthetic financial products, hedging overhang, and market liquidity in times of stress
- The market value of banks’ comparative advantage in providing liquidity
- Growth of non-deposit sources of funding like securitization
- The importance of public safety nets for the provision of liquidity
In addition to welcoming papers on these topics, the organizers seek papers related to any of the CFR’s research programs:
- Deposit Insurance
- Risk Measurement
- Banking Performance and the Economy
- Corporate Finance
- Consumer Finance and Credit Issues
- Financial Sector Policy and Regulation
Papers will be selected for presentation based on reviews by associate editors of the JFSR and the organizing committee (Mark Flannery, Paul Kupiec, and Haluk Unal). Selected papers may be invited for JFSR submission. Expenses for travel, food, and lodging will be reimbursed for paper presenters.
Papers must be received by July 10, 2007. Authors will be notified about the status of their papers by August 10, 2007. Please submit papers as “pdf” attachments to an email sent to CFR@fdic.gov. It is best to name the file with your surname: “Surname.pdf.” For additional information, contact Paul Kupiec (202) 898-6768 (email@example.com) or Haluk Unal (301) 405–2256 (firstname.lastname@example.org).