3  Brunnermeier and Pedersen, op. cit., note that, empirically, margins tend to rise when there are large drops in asset prices. They also note that changes in margins can be destabilizing to both asset-market liquidity and funding liquidity. 4  See T. Adrian and H. S. Shin, "Liquidity and Leverage" (Staff Report No. 328, Federal Reserve Bank of New York, May 2008).
5  "Central Bank Operations in Response to the Financial Turmoil," a report submitted by a study group established by the Committee on the Global Financial System, at the Bank for International Settlements. The report is available at: http://www.bis.org/publ/cgfs31.pdf?noframes=1.