There is a close analogy to the discounting of bank notes during the U.S. free banking era, as discussed by Gorton (see Gary Gorton (1996), "Reputation Formation in Early Bank Note Markets," Journal of Political Economy, vol. 104 (April), pp. 346-97).
In either case, however, variations in the liquidity premium play an important role in the amount of funding that lenders are willing to provide against a given set of assets. 17  See Gary B. Gorton and Andrew Metrick (2009), "Securitized Banking and the Run on Repo," Yale International Center for Finance Working Paper No. 14, July.