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Papers Saiesha Pitroda Papers Saiesha Pitroda

Liquidity-Saving Mechanisms in Trade Credit Networks: Optimising Corporate Liquidity

Trade credit drives corporate supply chains but exposes firms to cascading late-payment and default risks. By applying interbank Liquidity-Saving Mechanisms (LSMs) to corporate networks, a new Financial Market Infrastructure could drastically reduce liquidity requirements, clear gridlocks, and provide unprecedented visibility into supply chain health.

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