---
title: Global Liquidity and Volatility
url: https://www.ml-quant.com/papers/ssrn/4482265/
site: ML-Quant (https://www.ml-quant.com)
updated: 2026-09-26
license: Summaries CC BY 4.0; links go to the original sources
index: https://www.ml-quant.com/llms.txt
identifier: SSRN 4482265
source_url: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4482265
featured: 2025-12-28
citations: unknown
topic: Derivatives & Volatility
---


# Global Liquidity and Volatility

Global liquidity from banks impacts responses to crises and eases funding strains internationally.

- Source: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4482265
- Identifier: SSRN 4482265
- Released: 2023-06-16
- First featured: Quant Letter No. 124 (2025-12-28): https://www.ml-quant.com/issues/2025-12-28/
- Citations (Semantic Scholar): not tracked
- Published in: not yet
- Topic: Derivatives & Volatility

## Related

- [CREDIT DERIVATIVE -An Alternative Tool for Indian Commercial Banks to Transfer Credit Risk](https://www.ml-quant.com/papers/ssrn/4973692/): Poor credit risk management in Indian banks has led to rising Non-Performing Assets, highlighting the need for modern risk tools, such as credit derivatives, to improve future performance.
- [Hedge Funds in German Bonds](https://www.ml-quant.com/papers/ssrn/5057388/): Daily data (2005–2024) show hedge funds became key liquidity providers in German government bonds after 2015 as banks cut back due to higher balance‑sheet costs.
- [Hedge Fund Risk Management](https://www.ml-quant.com/papers/ssrn/5151327/): Banks demand lower haircuts from hedge funds with more bargaining power in secured lending, potentially increasing the risk of insufficient haircuts based on standard value-at-risk models.
- [Hedging Counterparty Credit Risk](https://www.ml-quant.com/papers/ssrn/5142912/): The article explores how to price and hedge counterparty credit risk and funding when there's no option to hedge the default risk of the bank or the counterparty. It uses local risk minimization to determine the best strategy.
- [A Study On Impact Of Credit Derivatives On The Indian Financial Sector](https://www.ml-quant.com/papers/ssrn/4983417/): The paper explores the impact of credit derivatives on risk management, banking stability, and financial growth in India's financial sector.
- [Derivatives in Portfolio Optimization with Affine GARCH Models](https://www.ml-quant.com/papers/repec/spr-decfin-v-47-y-2024-i-1-d-10-1007-s10203-024-00433-5/): The article indicates that investors who include a derivative in their portfolio perform better than those who only invest in stocks and bank accounts, potentially avoiding up to 7% annual losses.
