TY  - JOUR
A1  - Pelizzon, Loriana
A1  - Riedel, Max
A1  - Simon, Zorka
A1  - Subrahmanyam, Marti G.
T1  - Collateral eligibility of corporate debt in the Eurosystem
T2  - Journal of financial economics
N2  - We study the many implications of the Eurosystem collateral framework for corporate bonds. Using data on the evolving collateral eligibility list, we identify the first inclusion dates of bonds and issuers and use these events to find that the increased supply and demand for pledgeable collateral following eligibility (a) increases activity in the corporate securities lending market, (b) lowers eligible bond yields, and (c) affects bond liquidity. Thus, corporate bond lending relaxes the constraint of limited collateral supply and thereby improves market functioning.
KW  - Collateral policy
KW  - European Central Bank (ECB)
KW  - Corporate bonds
KW  - Eligibility premium
Y1  - 2024
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/82849
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-828498
SN  - 0304-405X
VL  - 153
IS  - 103777
PB  - Elsevier
CY  - Amsterdam
ER  -