Anderson, Alyssa G.; Du, Wenxin; Schlusche, Bernd - National Bureau of Economic Research - 2021
-financial-crisis regulatory environment. Global banks mainly use such funding to finance liquid, near risk-free arbitrage positions--in particular …, the interest on excess reserves arbitrage and the covered interest rate parity arbitrage. In this environment, we examine … global banks to the reform was a cutback in arbitrage positions that relied on unsecured funding, rather than a reduction in …