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 …

study the intended and unintended consequences of asset purchases in the repo market with Bund collateral. Bunds that are …

sovereign debt and default in which convenience yield arises because investors are able to pledge government bonds as collateral … on financial markets. Convenience yield is dependent on the valuation of collateral, which is negatively dependent on the … results. Decomposing it into the debt elasticity of a collateral valuation and a haircut component, we find that, under …

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 …