We show that repurchase agreements (repos) arise as the instrument of choice to borrow in
a competitive model with limited commitment. The repo contract traded in equilibrium …

This paper shows that the leverage ratio affects repo intermediation for banks and non-bank
financial institutions. We exploit a novel regulatory change in the UK to identify an …

This paper presents a model of repo intermediation in which dealers intermediate secured
financing between lenders and borrowers using the same collateral. Lenders are insulated …

The ramifications of the Global Financial Crisis, which erupted in 2007, continue to surprise
not only the general public but also finance professionals, economists, and journalists …

The reuse of collateral can support the efficient allocation of safe assets in the financial
system. Exploiting a novel dataset, we show that banks substantially increase their reuse of …

We study asset liquidity in a model where financial assets can be liquidated for money in
over-the-counter (OTC) secondary markets, in response to random liquidity needs. Traders …

We study how the strategic interaction of liquid-asset suppliers depends on the financial
market conditions that determine asset liquidity. In our model, two asset suppliers try to profit …

We study how the practice of collateral rehypothecation impacts the generation of liquidity
and the emergence of systemic liquidity risk, and how both depend on the structure of the …

Total value locked (TVL) is widely used to measure the size and popularity of protocols and
the broader ecosystem in decentralized finance (DeFi). However, the prevalent TVL …

1 The process of lending and the uninterrupted flow of credit to the real economy no longer
rely only on banks, but on a process that spans a network of banks, broker-dealers, asset …