The ECB has accepted increasing amounts of rubbish collateral since the crisis started leading to exposure to serious …

The reuse of collateral can support the efficient allocation of assets in the financial system. Exploiting a novel … dataset, we quantify banks’ collateral reuse at the security level. We show that banks substantially increase their reuse of … collateral in response to scarcity induced by central bank asset purchases. Repo rates are less sensitive to purchase …

The reuse of collateral can support the efficient allocation of safe assets in the financial system. Exploiting a novel … and shock amplification effects of collateral reuse …

study the intended and unintended consequences of asset purchases in the repo market with Bund collateral. Bunds that are …The Eurosystem's asset purchase programmes reduced the free float of German Bunds. Market participants feared impaired … market functioning in the Bund market and monetary policymakers unintended consequences for monetary policy transmission. We …

overall activity in the repo market expands through the collateral multiplier. The improved pricing conditions alleviate … collateral scarcity and enhance market quality in both the repo and cash markets. …We utilize the Eurosystem securities lending facilities as a laboratory to investigate the impact of collateral …