Does demand for safety create instability ? Secured (repo) funding can be made so safe that it never runs, but shifts …. As more secured debt causes larger fire sales, it leads to higher haircuts which further increase the frequency of runs …. While secured funding combined with high yield unsecured debt may reduce instability, the private choice of repo funding …

Does demand for safety create instability ? Secured (repo) funding can be made so safe that it never runs, but shifts …. As more secured debt causes larger fire sales, it leads to higher haircuts which further increase the frequency of runs …. While secured funding combined with high yield unsecured debt may reduce instability, the private choice of repo funding …

Does demand for safety create instability ? Secured (repo) funding can be made so safe that it never runs, but shifts …. As more secured debt causes larger fire sales, it leads to higher haircuts which further increase the frequency of runs …. While secured funding combined with high yield unsecured debt may reduce instability, the private choice of repo funding …

credit supply, inducing worse firm-level real effects. However, they buy securities with lower yields and haircuts, thus …