Liability dynamics: a new analytic framework for counterparty risk management? If data on funding liquidity can be organized into a theory of liability dynamics, it can be used to supplement credit ratings, VaR, and qualitative risk measures in evaluating counterparty risk

In October 2008, then SEC Chairman Christopher Cox was asked if he thought liabilities were a fruitful field for further regulatory development. 'Yes. The run-on-the-bank experiences of Bear and Lehman, [...]