Bernales, Alejandro
[Verfasser:in]
;
Cañón, Carlos Iván
[Sonstige Person, Familie und Körperschaft];
Garrido, Nicolás
[Sonstige Person, Familie und Körperschaft]
Collateralized-Uncollateralized Funding Decision in Money Markets
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments February 13, 2019 erstellt
Beschreibung:
Little is known about the factors that affect banks' relative preferences for collateralized and uncollateralized funding. We examine the determinants of the collateralized-uncollateralized funding decision using a unique dataset. We decompose the relative collateralized-uncollateralized funding activity into migrations and co-movements, including the directions of funding flows. Migrations and co-movements depend on various determinants, such as systemic risk, collateral availability and the inter-bank network structure. Interestingly, migrations and co-movements behave differently in periods of high financial stress, because safe assets (used as collateral to reduce counterparty risk) are then no longer perceived as safe as during periods of low-moderate financial stress