middle ; financing gap ; risk capital ; social collateral …

A unique legal reform in 2004 in Sweden redistributed collateral rights from banks holding floating liens to unsecured …, we document that a zero-sum redistribution of collateral rights and the resulting reduction in collateral capacity …

collateral constraints and endogenous entry and exit. A defining feature of our model is a non-Gaussian process of firm …

This paper studies the effects of making corporate sector assets eligible as collateral for central bank borrowing …. Banks are willing to pay collateral premia on assets if they become eligible as collateral. Collateral premia make debt … collateral supply, firm responses also have a negative effect: higher debt issuance makes corporate bonds riskier in future …

We study how the Eurosystem Collateral Framework for corporate bonds helps the European Central Bank (ECB) fulfill its … due to the increased supply and demand for pledgeable collateral following eligibility, (i) securities lending market … collateral supply, thereby making the market more cohesive and complete. Following eligibility, bond-issuing firms reduce bank …

We study the eligibility of corporate bonds as collateral for central bank operations and its effect on interbank and … collateral policies must also account for endogenous responses of the corporate sector: banks increase demand for corporate bonds … if they are eligible as collateral, and firms increase their leverage and default risk in response. This has adverse …

We argue that firms' assets, especially their tangible assets, serve as collateral restricting both secured and …