IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-031-71503-7_1.html
   My bibliography  Save this book chapter

Beyond the Surface: In-Depth Perspectives on Liquidity and Risk Frontiers

In: Liquidity Dynamics and Risk Modeling

Author

Listed:
  • Mazin A. M. Al Janabi

    (Calle Maranon 16)

Abstract

In the intricate world of finance, where markets operate at lightning speed and assets change hands in the blink of an eye, liquidity reigns supreme. It is the lifeblood of financial markets, ensuring the smooth functioning of economies worldwide and facilitating price discovery. Liquidity refers to the ease with which an asset can be converted into cash without causing a significant change in its price. However, liquidity issues can arise in both financial markets and institutions, presenting challenges with far-reaching implications. Beneath its seemingly straightforward facade lies a complex ecosystem fraught with risks and interdependencies. Liquidity risk is a significant concern for financial institutions and investors, representing the potential inability to convert an asset into cash quickly enough to meet financial obligations without incurring substantial losses. Effective liquidity risk management is imperative for maintaining financial stability and ensuring the smooth functioning of markets. This chapter embarks on an exhaustive journey through the complexities of liquidity, delving into liquidity issues in finance, exploring its interactions with market risk, and probing the uncharted territories where these domains converge. Furthermore, this chapter examines the intricate relationship between liquidity, liquidity risk, and market risk, highlighting the influence of artificial intelligence (AI) and machine learning (ML) in finance. It addresses current challenges and outlines how intelligent algorithms are evolving to manage liquidity and market risk more effectively.

Suggested Citation

  • Mazin A. M. Al Janabi, 2024. "Beyond the Surface: In-Depth Perspectives on Liquidity and Risk Frontiers," Springer Books, in: Liquidity Dynamics and Risk Modeling, chapter 0, pages 1-78, Springer.
  • Handle: RePEc:spr:sprchp:978-3-031-71503-7_1
    DOI: 10.1007/978-3-031-71503-7_1
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-031-71503-7_1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.