provide modest support for all three hypotheses that there was an increase in toughness during the credit crunch period (1989 …

This paper presents a model of repo rehypothecation in which dealers intermediate funds and collateral between cash … insulated from a dealer's default. In addition, collateral providers' repo terms are sensitive to changes in a dealer's default … probability and its correlation with the collateral's outcome, whereas cash lenders' repo terms are unaffected by these changes …

low to modest credit quality. Mortgage processing capacity constraints typically bind when the demand for mortgage … refinancing shifts outward, usually because of lower mortgage rates. As a result, high capacity utilization leads mortgage lenders … to ration mortgage credit, completing mortgages that require less underwriting resources, and are thus less costly, to …

payments to external creditors. ; Regardless of whether the central bank makes external debt pay­ments, the clearing … burdened with external debt payments however, it is possible that the "freed" reserves would simply be used to increase … payments to external creditors. …

Payments systems have grown considerably and have become increasingly complex, prompting regulators to reassess their … roles and renewing interest in historical experiences with payments systems. In this paper, I study the Banco Central System … of Mexico, which was a bank note par redemption and clearing system for other payments that operated in Mexico City from …