Ashcraft, Adam; Garleanu, Nicolae Bogdan; Pedersen, … - C.E.P.R. Discussion Papers - 2010
can be lowered by easing funding constraints through lowering haircuts. To assess empirically the power of the haircut … unpredictable rejections of bonds from TALF, we estimate that haircuts had a significant effect on prices. Further, unique survey … evidence suggests that lowering haircuts could reduce required returns by more than 3% and provides broader evidence on the …