We study a dynamic model of collateralized lending under adverse selection in which the quality of collateral assets is …

The quality of collateral used in collateralized loans depends on the proportion of the investment to the lender …, making the lender demand collateral of higher quality. After a crisis, economies with high investment ratios can expect a … faster recovery when this ratio is reduced, as firms can use lower-quality collateral and the financing costs are reduced …

This paper investigates contagion in financial networks through both debt and collateral markets. Payment from a … collateralized debt contract depends not only on the borrower's balance sheet but also on the price of the underlying collateral. I … show that the existence of the collateral channel of contagion amplifies the contagion from the counterparty channel, and …

of the financial crisis in 2008. Such collateralized debt markets have both collateral price channel and counterparty …

The paper studies the central bank collateral framework and its impact on banks' liquidity under an adverse stress test … significantly after the initial shock. We find evidence of a threshold in the benefits of expanding the collateral framework and … institutions can rely on the collateral framework channel. …