Safe assets : a review

Pascal Golec, Enrico Perotti

We survey the emerging literature on safe assets. The recent evidence on a time-varying safety premium suggests a demand for safety quite distinct from liquidity and classic money demand, offering insight on a strong segmentation between safe savings and speculative investment markets. A related theoretical literature studies the private creation of (quasi) safe assets by intermediaries, shedding new light on bank intermediation and financial stability. Novel concepts such as maturity races, information sensitivity, risk-intolerant debt and induced runs reinforce the liquidity risk externality associated with banking, and have significant implications for research on credit cycles as well as for prudential policy.

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Year of publication:	[2017]
Authors:	Golec, Pascal ; Perotti, Enrico
Publisher:	Frankfurt am Main, Germany : European Central Bank
Subject:	safe assets \| safety premium \| liquidity premium \| riskless debt \| demand for safety \| Risikoprämie \| Risk premium \| Öffentliche Anleihe \| Public bond \| Theorie \| Theory \| Liquidität \| Liquidity \| Risiko \| Risk \| Kreditsicherung \| Collateral \| Risikoaversion \| Risk aversion

Extent:	1 Online-Ressource (circa 33 Seiten) Illustrationen
Series:	Working paper series / European Central Bank. - Frankfurt, M. : European Central Bank, ISSN 1725-2806, ZDB-ID 2123559-4. - Vol. no 2035 (March 2017)
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
ISBN:	978-92-899-2757-4
Other identifiers:	10.2866/762651 [DOI] hdl:10419/162678 [Handle]
Classification:	E41 - Demand for Money ; E44 - Financial Markets and the Macroeconomy ; E52 - Monetary Policy (Targets, Instruments, and Effects) ; G21 - Banks; Other Depository Institutions; Mortgages
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://ebvufind01.dmz1.zbw.eu/10011637030