the cost of ex-post inefficiency when there are adverse aggregate shocks to the fundamental quality of collateral … shocks by engaging in collateral liquidations. Financial arbitrage by less leveraged financial intermediaries equilibrates … returns from acquiring collateral at fire-sale prices and returns from real-sector lending, inducing higher lending rates, a …

This paper studies how collateral affects bond yields. Using a large dataset of public bonds, we document that …

cornerstone of credit markets in most societies since antiquity. The ability to seize and sell collateral reduces the creditor …

We explore the determinants of liquidation values of collateral, focusing on the potential buyers of assets. When a fi … and risk-shifting in loan contracts. Our contribution reveals that collateral does not necessarily solve for the asset …

It is argued that lending where the overwhelming criterion is the collateral rather than the repayment capability of …

We use unique data from U.S. bank holding company-affiliated securities dealers to study the use of collateral in … bilateral repurchase and securities lending agreements. Market participants' use of collateral differs substantially across … collateral as an enforcement mechanism, and show that the data do not confirm these implications. We then turn to models of …

to renege on debt repayments. We show that credit exclusion creates soft collateral in the form of a borrower …, boosts the value of soft collateral, and facilitates borrowing and lending. A dynamic rating system allows agents' ratings to … collateral, and improves social welfare. We show that the optimal rating system is coarse, as we observe in the real world …