We examine the effects of collateral provision as a potential channel between funding liquidity tensions and the … between financial institutions to market participants that bear new liquidity risk on the market associated with collateral … are used as collateral both in the open market operations of the ECB and on the interbank market. We use a time …

government debt securities market, since these assets are used as collateral both in the open market operations of the ECB and on … on the collateral market. The existence of these conventional and unconventional regimes highlights some asymmetries in …

We show, by means of an example, that in models where default is subject to both collateral repossession and utility … their promises. At the same time collateral bundles and utility functions are such that the full repayment of debts implies … that the asset price should be strictly larger than the cost of collateral requirements. This is sufficient to induce …

, collateral requirements do not always eliminate the occurrence of Ponzi schemes and equilibria may fail to exist. This paper aims …