sense that repo lending increases with risk, while spreads, maturities, and haircuts remain stable. Our comparison across …

in the repo market that led to structural market failures – opacity, conflict of interest, and systemic risk – and … system, the Dodd-Frank Act essentially left untouched this important source of systemic risk. After shedding new light on the … efficiency, and mitigate systemic risk in the repo market …

In summer 2011, elevated sovereign risk in Eurozone peripheral countries increased the solvency risk of Eurozone banks … funding pressure for banks, but did not help to contain sovereign risk. In fact, banks of the peripheral countries used the … public funds to increase their exposure to risky domestic debt, so that when solvency risk in the Eurozone worsened the run …

captures three effects: (1) the effectiveness of the haircut policy, (2) CCP member default risk (conditional on sovereign … default) and (3) CCP default risk (conditional on both sovereign and CCP member default). The data show that, during the … sovereign debt crisis of 2011, repo rates strongly respond to movements in sovereign risk, in particular for GIIPS countries …