Why collateral research misses the point

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For a while, collateral scarcity was a hot topic for researchers. Anticipating a step-change in demand for high-quality assets, economists and analysts at the Bank of England, the Bank for International Settlements (BIS) and De Nederlandsche Bank, among others, published a clutch of thoughtful papers. And then, because they all came to pretty much the same conclusion, the spotlight moved on. Demand will grow, the researchers concluded – largely because of new rules on central clearing,