I construct an infinite-horizon dynamic stochastic general equilibrium model with a collateral constraint and actual … taking into account the non-linear payoffs of the collateralized debt contracts and the scarcity of collateral, borrowers and … the senior tranche to the price of the junior tranche of collateral. Therefore, leverage is pro-cyclical if there is more …

rates. Borrowers select a single contract from the menu, whereas lenders take the choice as given. Binding collateral …

Financial lubrication in markets is indifferent to margin posting via money or collateral; the relative price(s) of … money and collateral matter. Some central banks are now a major player in the collateral markets. Analogous to a coiled … spring, the larger the quantitative easing(QE) efforts, the longer the central banks will impact the collateral market and …

In global financial centers, short-term market rates are effectively determined in the pledged collateral market, where … banks and other financial institutions exchange collateral (such as bonds and equities) for money. Furthermore, the use of … long-dated securities as collateral for short tenors-or example, in securities-lending and repo markets, and prime …

An increase in collateral availability can reduce the need for bank auditing. We test this hypothesis using reforms … collateral and auditing are substitute screening devices …

been a significant decline in the interconnectedness in the pledged collateral market between banks and non-banks. We find … that both the collateral and its associated velocity are not rebounding as of end-2011 and still about $4-5 trillion lower …

reflects only bank balance sheet data. We focus on off-balance sheet financing via pledged collateral since it straddles …

particular for collateral that saves more on regulatory capital …