Miruna-Daniela Ivan The widespread practice of financial institution to re-use securities received as collateral plays a key role in the repurchase agreement (repo) market functioning. By increasing the availability of securities which can be used as collateral, collateral re-use lowers funding costs under normal market conditions, allowing collateral to flow to where it is most … Continue reading Collateral re-use: unveiling the risk of delivery failures and higher volatility in the repo market