Eurosystem against non-HQLA collateral. This paper quantifies the extent of this liquidity transformation and finds that on … pledged vs new collateral, and the second approach compares the liquidity profile of the pool of pledged securities with banks …' total eligible securities holdings. Both approaches show that banks use their least liquid assets as collateral first and …

This paper studies whether Eurosystem collateral eligibility played a role in the portfolio choices of euro area asset …