Adolfo de Motta
Institution
McGill University
PhD Year
2001
FTG Membership
Senior Member
Website
https://www.mcgill.ca/desautels/adolfo-de-motta
Featured Work
Liquidity Given, Liquidity Gained: Why Informed Investors Take Deposits
Sep 20, 2026
Why do banks fund illiquid, informationally sensitive assets with short-term, often demandable debt? We develop a model in which banks' reliance on short-term debt makes their assets more liquid. Because banks monitor and collect information about borrowers, adverse selection makes it costly for them to raise new funds against their assets. Short-term debt forces banks to seek external funds whenever creditors demand liquidity, disguising their...
