Research Discussion Paper – RDP 2021-01 The Role of Collateral in Borrowing

Contents

• Introduction
• Institutional Background and Data
• Empirical Strategy
• The Repo and Unsecured Markets' Reactions to Stress
• Further Robustness
• Conclusion
• Appendix A: Interbank Market Infrastructure
• Appendix B: Additional Regressions and Robustness Tests
• References

We would like to thank Chris Becker, Anthony Brassil, Falko Fecht, Xavier Freixas, Fred Malherbe, John Simon and seminar participants at the RBA, Universitat Pompeu Fabra, University of New South Wales, University of Sydney and University of Technology Sydney for helpful comments and feedback. We would also like to thank Mark Manning and ASX staff Tim Hogben and Wayne Jordan for help with the data. This paper is not intended to represent the views of the RBA. Any errors are our own.