Discussion Paper

Monitoring Risk From Collateral Runs


Abstract: We present an estimate of the total amount of funds primary dealers can access from the intermediation of cash and securities through secured funding transactions (SFTs). We highlight how this activity can introduce an additional source of risk: the abrupt withdrawal of cash borrowers, which we call collateral runs.

https://doi.org/10.17016/2380-7172.2605

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2020-07-31

Number: 2020-07-31-2