decouple across secured and unsecured markets following an adverse shock to credit risk. The scarcity of underlying collateral …

This paper examines the role of collateral in the financial system, with special emphasis on the implications for … financial collateral assets. Then we examine financial stability issues and the case for regulating the use of collateral. We … use of collateral is neither a sufficient nor a necessary condition for financial stability. To ensure the stability of …

secured and unsecured markets following an adverse shock to credit risk. The scarcity of underlying collateral may amplify the … crisis ; Interbank market ; Liquidity ; Credit risk ; Collateral …

unsecured lending and substantial increases in haircuts on posted collateral. This paper seeks to understand the implications of …