Umfang:
Online-Ressource (24 p)
Ausgabe:
Online-Ausg.
ISBN:
1463923953
,
9781463923952
Serie:
IMF Working Papers Working Paper No. 11/256
Inhalt:
Large banks and dealers use and reuse collateral pledged by nonbanks, which helps lubricate the global financial system. The supply of collateral arises from specific investment strategies in the asset management complex, with the primary providers being hedge funds, pension funds, insurers, official sector accounts, money markets and others. Post-Lehman, there has been a significant decline in the source collateral for the large dealers that specialize in intermediating pledgeable collateral. Since collateral can be reused, the overall effect (i.e., reduced ?source'' of collateral times the velocity of collateral) may have been a $4-5 trillion reduction in collateral. This decline in financial lubrication likely has impact on the conduct of global monetary policy. And recent regulations aimed at financial stability, focusing on building equity and reducing leverage at large banks/dealers, may also reduce financial lubrication in the nonbank/bank nexus
Weitere Ausg.:
Erscheint auch als Druck-Ausgabe Singh, Manmohan Velocity of Pledged Collateral: Analysis and Implications Washington, D.C. : International Monetary Fund, 2011 ISBN 9781463923952
Sprache:
Englisch
DOI:
10.5089/9781463923952.001
