In global financial centers, short-term market rates are effectively determined in the pledged collateral market, where … banks and other financial institutions exchange collateral (such as bonds and equities) for money. Furthermore, the use of … long-dated securities as collateral for short tenors-or example, in securities-lending and repo markets, and prime …

An increase in collateral availability can reduce the need for bank auditing. We test this hypothesis using reforms … collateral and auditing are substitute screening devices …

been a significant decline in the interconnectedness in the pledged collateral market between banks and non-banks. We find … that both the collateral and its associated velocity are not rebounding as of end-2011 and still about $4-5 trillion lower …

reflects only bank balance sheet data. We focus on off-balance sheet financing via pledged collateral since it straddles …

particular for collateral that saves more on regulatory capital …