Market maker and Maturity mismatch: Difference between pages

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imported>Doug Williamson
(Link with Big Bang page.)
 
imported>Doug Williamson
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Market makers in an asset quote two-way prices to the market.
The structural risk accepted by banks when undertaking maturity transformation.


Banks' liabilities generally have much shorter contractual maturities than their assets.


Two-way prices are the (different) buying and selling prices at which the market maker is willing to deal.
This maturity mismatch is a source of liquidity risk.




== See also ==
== See also ==
* [[Big Bang]]
* [[Bank]]
* [[Bid-offer price]]
* [[Liquidity]]
* [[Market price]]
* [[Liquidity risk]]
* [[Market taker]]
* [[Maturity]]
* [[MMLR]]
* [[Maturity transformation]]
* [[NMS]]
* [[Mismatch report]]
* [[Turn]]
* [[Riding the yield curve]]
* [[Two-way price]]
* [[Run]]
 
[[Category:Identify_and_assess_risks]]

Latest revision as of 07:24, 29 June 2022

The structural risk accepted by banks when undertaking maturity transformation.

Banks' liabilities generally have much shorter contractual maturities than their assets.

This maturity mismatch is a source of liquidity risk.


See also