points: 1) since only tangible capital can be pledged as collateral, a shift toward intangible capital shrinks firms' debt …

adverse selection (AS). In particular, we study how the level of such exemption affects the role of collateral depending on … higher for borrowers who are requested to post collateral. Moreover, conditional on posting collateral, the cost of credit … does not change with the level of asset exemption. Differently, in the case of AS, the decision to post collateral results …

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 …

collateral, a shift toward greater reliance on intangible capital shrinks the debt capacity of firms and leads them to optimally …