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 …

share of bond financing; and the dampening effect of a larger bond financing share also attenuates the ultimate impact of …We study how differences in the aggregate structure of corporate debt financing affect the transmission of monetary … initial share of bond- relative to bank-based finance; this effect weakens, and may even reverse, in economies with a low …

share of risky securities surged from 28% to over 40% of firms' financial assets. Using a business-cycle heterogeneous firms …