Search Results

SORT BY: PREVIOUS / NEXT
Author:Infante, Sebastian 

Working Paper
Collateral Runs

This paper models an unexplored source of liquidity risk faced by large broker-dealers: collateral runs. By setting different contracting terms on repurchase agreements with cash borrowers and lenders, dealers can source funds for their own activities. Cash borrowers internalize the risk of losing their collateral in case their dealer defaults, prompting them to withdraw it. This incentive creates strategic complementarities for counterparties to withdraw their collateral, reducing a dealer's liquidity position and compromising her solvency. Collateral runs are markedly different than ...
Finance and Economics Discussion Series , Paper 2018-022

Working Paper
The Macroeconomic Implications of CBDC: A Review of the Literature

This paper provides an overview of the literature examining how the introduction of a CBDC would affect the banking sector, financial stability, and the implementation and transmission of monetary policy in a developed economy such as the United States. A CBDC has the potential to improve welfare by reducing financial frictions in deposit markets, by boosting financial inclusion, and by improving the transmission of monetary policy. However, a CBDC also entails noteworthy risks, including the possibility of bank disintermediation and associated contraction in bank credit, as well as potential ...
Finance and Economics Discussion Series , Paper 2022-076

Discussion Paper
Treasury Market Functioning During the COVID-19 Outbreak: Evidence from Collateral Re-use

In March 2020, uncertainty over the COVID-19 pandemic caused severe stress in U.S. financial markets. Specifically, Fleming and Ruela (2020) document a severe impairment of Treasury market functioning, as indicated by a sharp increase in bid/ask spreads, a decline in market depth, and an increase in price impact measures.
FEDS Notes , Paper 2020-12-04

Working Paper
What Drives U.S. Treasury Re-use?

We study what drives the re-use of U.S. Treasury securities in the financial system. Using confidential supervisory data, we estimate the degree of collateral re-use at the dealer level through their collateral multiplier : the ratio between a dealer's total secured funding and their outright holdings financed through secured funding. We find that Treasury re-use increases as the supply of available securities decreases, especially when supply declines due to Federal Reserve asset purchases. We also find that non-U.S. dealers' re-use increases when profits from intermediating cash are high, ...
Finance and Economics Discussion Series , Paper 2020-103r1

FILTER BY year

FILTER BY Content Type

FILTER BY Jel Classification

E40 12 items

E50 12 items

G20 7 items

G28 7 items

G01 6 items

G21 6 items

show more (13)

FILTER BY Keywords

PREVIOUS / NEXT