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dc.creatorPelizzon, Loriana
dc.creatorRiedel, Max
dc.creatorSimon, Zorka
dc.creatorSubrahmanyam, Marti G.
dc.date.accessioned2021-09-28T09:39:51Z
dc.date.available2021-09-28T09:39:51Z
dc.date.issued2020-04-01
dc.identifier.urihttps://fif.hebis.de/xmlui/handle/123456789/2381
dc.description.abstractWe study how the Eurosystem Collateral Framework for corporate bonds helps the European Central Bank (ECB) fulfill its policy mandate. Using the ECBs eligibility list, we identify the first inclusion date of both bonds and issuers. We find that due to the increased supply and demand for pledgeable collateral following eligibility, (i) securities lending market trading activity increases, (ii) eligible bonds have lower yields, and (iii) the liquidity of newly-issued bonds declines, whereas the liquidity of older bonds is unaffected/improves. Corporate bond lending relaxes the constraint of limited collateral supply, thereby making the market more cohesive and complete. Following eligibility, bond-issuing firms reduce bank debt and expand corporate bond issuance, thus increasing overall debt size and extending maturity.
dc.rightsAttribution-ShareAlike 4.0 International
dc.rights.urihttp://creativecommons.org/licenses/by-sa/4.0/
dc.subjectFinancial Markets
dc.subjectMacro and Finance
dc.subjectSystemic Risk Lab
dc.titleCollateral Eligibility of Corporate Debt in the Eurosystem
dc.typeWorking Paper
dcterms.referenceshttps://fif.hebis.de/xmlui/handle/123456789/1536?ECB EA
dcterms.referenceshttps://fif.hebis.de/xmlui/handle/123456789/1537?IHS Markit
dc.source.filename275_SSRN-id3586409
dc.identifier.safeno275
dc.subject.keywordscollateral policy
dc.subject.keywordsecb
dc.subject.keywordscorporate bonds
dc.subject.keywordscorporate debt structure
dc.subject.keywordseligibility premium
dc.subject.jelG12
dc.subject.jelG14
dc.subject.jelG32
dc.subject.jelE58
dc.subject.topic1merrouche
dc.subject.topic1secondary
dc.subject.topic1framework
dc.subject.topic2ratio
dc.subject.topic2investigate
dc.subject.topic2crisis
dc.subject.topic3characteristic
dc.subject.topic3firm
dc.subject.topic3eligible
dc.subject.topic1nameSystematic Risk
dc.subject.topic2nameCorporate Finance
dc.subject.topic3nameFinancial Markets
dc.identifier.doi10.2139/ssrn.3586409


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