This paper studies the risk of "fire sales" in the tri-party repo market, a large and important market where securities … available to mitigate the risk of pre-default fire sales and that no established tools currently exist to mitigate the risk of …

) and a specification of the amount of collateral per dollar of lending. The latter is summarized by the margin or "haircut …" associated with the loan. Some key models of endogenous collateral constraints imply that the primary equilibrating force will be … a two-state world, implies that haircuts will adjust to render all lending riskless, and that a loss of risk capital on …

been a significant decline in the interconnectedness in the pledged collateral market between banks and non-banks. We find … that both the collateral and its associated velocity are not rebounding as of end-2011 and still about $4-5 trillion lower …

Financial lubrication in markets is indifferent to margin posting via money or collateral; the relative price(s) of … money and collateral matter. Some central banks are now a major player in the collateral markets. Analogous to a coiled … spring, the larger the quantitative easing(QE) efforts, the longer the central banks will impact the collateral market and …

This paper examines the role of collateral in the financial system, with special emphasis on the implications for … financial collateral assets. Then we examine financial stability issues and the case for regulating the use of collateral. We … use of collateral is neither a sufficient nor a necessary condition for financial stability. To ensure the stability of …