Kaldorf, Matthias; Wicking, Florian - 2021 - This version: February 28, 2021, first version: October 30, 2020
We study the eligibility of corporate bonds as collateral for central bank operations and its effect on interbank and corporate bond markets. While money market functionality increases in the amount of eligible assets, a thorough assessment of collateral policies must also account for endogenous...
