I provide the first systematic analysis of collateral choices in one of the main short-term funding markets, the … repurchase agreement (repo) market. In repos, long-term bonds serve as collateral connecting short-term and long-term funding … markets. In general collateral repos, banks can choose from a list of eligible bonds. Surprisingly, they often deliver more …

credit via revaluation of collateral and subsequent lending decisions. Specifically we examine banks' treatment of real … estate collateral during the Covid-19 crisis. First we find evidence of significant frictions in the transmission of asset … price dynamics to collateral values. Despite this we find that lending relationships reliant on real estate collateral …

We utilize the Eurosystem securities lending facilities as a laboratory to investigate the impact of collateral … overall activity in the repo market expands through the collateral multiplier. The improved pricing conditions alleviate … collateral scarcity and enhance market quality in both the repo and cash markets. …