Mobile Collateral versus Immobile Collateral

نویسندگان

چکیده

The financial architecture prior to the recent crisis was a system of mobile collateral. Safe debt, whether government bonds or privately produced bonds, that is, asset-backed securities, could be traded, posted as collateral, and rehypothecated, moving their highest value use. Since crisis, regulatory changes have aimed make collateral immobile, most notably with BIS liquidity coverage ratio (LCR) for banks requires (net) short-term (uninsured) bank debt (e.g., repo) backed one-for-one high-quality bonds. We evaluate this immobile capital reference previous structurally identical regime also required by Treasury one-for-one: U.S. National Banking Era. experience Era suggests LCR is unlikely reduce fragility may increase it.

برای دانلود باید عضویت طلایی داشته باشید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Collateral Crises⇤

Short-term collateralized debt, private money, is efficient if agents are willing to lend without producing costly information about the collateral backing the debt. When the economy relies on such informationally-insensitive debt, firms with low quality collateral can borrow, generating a credit boom and an increase in output. Financial fragility is endogenous; it builds up over time as inform...

متن کامل

Collateral circulation.

BACKGROUND The collateral circulation plays a pivotal role in the pathophysiology of cerebral ischemia. Current knowledge of the collateral circulation remains sparse, largely because of prior limitations in methods for evaluation of these diminutive routes of cerebral blood flow. SUMMARY OF REVIEW Anatomic descriptions of the collateral circulation often focus on more proximal anastomoses at...

متن کامل

Estimating Collateral Circulation

losses as well as nitroglycerin and digitalis glycosides were applied with favorable effect to cardiovascular risk patients during the perioperative period.1 3 Frequency of myocardial infarctions and of heart failure during the early postoperative period suggest that in coronary artery disease adrenergic overactivity induces myocardial necrosis and augments the surrounding or preceding "twiligh...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

ژورنال

عنوان ژورنال: Journal of Money, Credit and Banking

سال: 2022

ISSN: ['1538-4616', '0022-2879']

DOI: https://doi.org/10.1111/jmcb.12917