tend not to face higher interest rates because they provide collateral. This paper illustrates these effects in a model and …

Many assets derive their value not only from future cash flows but also from their ability to serve as collateral. In … this paper, we investigate this collateral value and its impact on asset returns in an infinite-horizon general equilibrium … model with heterogeneous agents facing collateral constraints for borrowing. We document that borrowing against collateral …

their collateral supply is determined by their ex ante securities holdings and repo rates. Second, it makes use of the …

The reuse of collateral can support the efficient allocation of assets in the financial system. Exploiting a novel … dataset, we quantify banks’ collateral reuse at the security level. We show that banks substantially increase their reuse of … collateral in response to scarcity induced by central bank asset purchases. Repo rates are less sensitive to purchase …

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 … investigate how unlimited liquidity provision affects collateral prices. Also, I match banks' trades with their balance sheet and …

collateral as measured by tangible fixed assets plays a critical role. In particular, bank flow shocks increase the credit supply … to firms and sectors with more real estate collateral. Higher credit supply then leads firms to hire and invest more …