We construct the first measure of collateral re-use at the bank and bond level for the European repo market using a … regulatory transaction dataset. We show that banks materially increase the rate of re-use in response to tightened asset scarcity … than liquidity and profit from the repo rate spread. Yet, dealers also re-use collateral to source liquidity which exposes …

The reuse of collateral can support the efficient allocation of safe assets in the financial system. Exploiting a novel … dataset, we show that banks substantially increase their reuse of sovereign bonds in response to scarcity induced by … Eurosystem asset purchases. While repo rates react little to purchase-induced scarcity when reuse is low, they become …

collateral in response to scarcity induced by central bank asset purchases. Repo rates are less sensitive to purchase …-induced scarcity at low levels of reuse, when the banking system can easily supply collateral through reuse. Repo rates are more …The reuse of collateral can support the efficient allocation of assets in the financial system. Exploiting a novel …

We construct the first measure of collateral re-use at the bank and bond level for the European repo market using a … regulatory transaction dataset. We show that banks materially increase the rate of re-use in response to tightened asset scarcity … than liquidity and profit from the repo rate spread. Yet, dealers also re-use collateral to source liquidity which exposes …

We construct the first measure of collateral re-use at the bank and bond level for the European repo market using a … regulatory transaction dataset. We show that banks materially increase the rate of re-use in response to tightened asset scarcity … than liquidity and profit from the repo rate spread. Yet, dealers also re-use collateral to source liquidity which exposes …

The reuse of collateral can support the efficient allocation of safe assets in the financial system. Exploiting a novel … dataset, we show that banks substantially increase their reuse of sovereign bonds in response to scarcity induced by … Eurosystem asset purchases. While repo rates react little to purchase-induced scarcity when reuse is low, they become …

collateral in response to scarcity induced by central bank asset purchases. Repo rates are less sensitive to purchase …-induced scarcity at low levels of reuse, when the banking system can easily supply collateral through reuse. Repo rates are more …The reuse of collateral can support the efficient allocation of assets in the financial system. Exploiting a novel …

We construct the first measure of collateral re-use at the bank and bond level for the European repo market using a … regulatory transaction dataset. We show that banks materially increase the rate of re-use in response to tightened asset scarcity … than liquidity and profit from the repo rate spread. Yet, dealers also re-use collateral to source liquidity which exposes …