This special issue of The Journal of Financial Market Infrastructures on collateral provides a collection of papers that are not fully in sync with traditional thinking in policy and academic circles, or are under-researched.
This paper attempts to quantify the “effective” supply of collateral assets in Australia by applying a measure of supply that adjusts outstanding issuance for two important features of the collateral market.
The authors provide theoretical microfoundations to understand the impact of monetary policy on markets characterized by collateral reuse.
The authors model the asymmetry between collateral values to the parties in the collateral chain. The paper highlights that collateral reuse can be socially beneficial if the costs of misallocation are not significant.
Top staffer at FSB addresses liquidity, bank risk data and securities financing risks in a wide-ranging interview
Billions of dollars in client margin have already been moved off balance sheet
Bank overhaul of prime brokerage hurting some more than others
Reuse, title transfer, reporting and derivatives in scope scrutinised
Prime brokers forced to comply and change models, says lawyer
Content provided by IBM
EuroCCP's Diana Chan talks to Jessica Meek on the issues facing the clearing industry
Received collateral is currently counted towards the liquidity reserve at some large banks, but should not be included in the LCR, say sceptics, who argue the assets can't be relied upon
Interoperability has launched in cash equities with a system that is good, but not perfect
US mortgage giant says segregating variation margin will hurt FHFA- and FCA-regulated entities, and create new funding obligations for swap dealers
Collateral: look, but don’t touch
The raft of new regulations on OTC derivatives will be problematic for buy-side firms, says new report
Grease is the word
In an exclusive interview with Risk, the administrators of Lehman Brothers International (Europe) discuss their role in handling the largest bankruptcy in corporate history, revealing how the process has raised questions about prime brokerage agreements,...