مخازن، فروش آتش و سیاست ورشکستگی
|کد مقاله||سال انتشار||مقاله انگلیسی||ترجمه فارسی||تعداد کلمات|
|48230||2015||11 صفحه PDF||سفارش دهید||8800 کلمه|
Publisher : Elsevier - Science Direct (الزویر - ساینس دایرکت)
Journal : Review of Economic Dynamics, Volume 18, Issue 1, January 2015, Pages 21–31
This paper studies the optimal bankruptcy policy for repurchase agreements (repos) with respect to their exemption from the automatic stay of bankruptcy. The exemption from automatic stay has been one of the key contributors to the development of the repo market as a major source of funding for many financial market participants. At the same time the exemption has raised concerns that the default of a large institution could cause externalities on other markets, in the form of fire sales. We find that exempting repos from the automatic stay may increase the size of the repo market by enhancing the liquidity of collateral, but it can cause fire sales that are associated with reductions in real investment. Hence, policy makers face a trade-off between the benefits of investment activity and the benefits of liquid repo markets.