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

obtaining high-quality collateral increases with demand pressures in the cash market (short-selling activities), even in calm … financial market conditions. In bear market conditions - when good collateral is needed the most - this could lead to tensions … in some asset market segments. Collateral reuse may alleviate some of these tensions by reducing the collateral scarcity …