Economists at SNB study reuse of collateral
The activity was ‘most popular’ before the financial crisis
Researchers at the Swiss National Bank (SNB) have presented what they consider to be the first systematic empirical study of the reuse of collateral in a working paper published today.
In Re-use of collateral in the repo market, Lucas Marc Fuhrer, Basil Guggenheim and Silvio Schumacher begin by estimating the level of reuse activity in the Swiss franc interbank repo market before analysing what drives it.
Using data from the period between March 2006 and February 2013, the authors find the
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