Malz, Financial Risk Management: Chapter 12, Liquidity and Leverage, is covered in three separate instructional videos. We have divided the learning objectives for this chapter into three sections.
This first video is 35 minutes, and analyzes the following concepts:
* Differentiate between sources of liquidity risk and explain how each of these risks can arise for financial institutions
* Summarize the asset-liability management process at a fractionalreserve bank, including the process of liquidity transformation.
* Describe specific liquidity challenges faced by money market mutual funds and by hedge funds, particularly in stress situations.
* Compare transactions used in the collateral market and explain risks that can arise through collateral market transactions.