Liquidity was also the Achilles heel of many asset-backed commercial paper (ABCP) programs and structured investment vehicles. In many such vehicles, medium-term, illiquid, hard-to-value assets were funded by short-term money market securities at yields only marginally higher than those offered by the most liquid, transparent, risk-free securities. As confidence that this paper could be rolled over faltered, there was indiscriminate selling of structured assets.
The research papers to be presented at today’s conference reflect the serious thoughts and ideas of expert researchers on major issues.