How does asset encumbrance affect the fragility of intermediaries subject to rollover risk? We offer a model in which a …. Encumbering assets allows a bank to raise cheap secured debt and expand profitable investment, but it also concentrates risk on … guarantees induce excessive encumbrance and fragility. To mitigate such risk shifting, we study prudential regulatory tools …

whether they took on unwarranted credit risk by providing other than ultra-short liquidity. I propose a model in which …

whether they took on unwarranted credit risk by providing other than ultra-short liquidity. I propose a model in which …

styles under a number of criteria including consistency from an accounting standpoint, counterparty risk hedgeability …

their demand for collateral assets, and the short-term scarcity of collateral securities leads to higher prices, the Fire … Buy premium. To avoid collateral scarcity, central banks increase the set of eligible collateral assets. However, if the … risk-shifting channel is open for these newly eligible securities, banks prefer to pledge them and pay another premium, the …

seeks to control the amount of tail risk that large banks take in their trading books. However, banks around the world … whether the Basel framework allows banks to take substantive tail risk in their trading books without a capital requirement … regarding the treatment of tail risk. …

seeks to control the amount of tail risk that large banks take in their trading books. However, banks around the world … whether the Basel framework allows banks to take substantive tail risk in their trading books without a capital requirement … regarding the treatment of tail risk …