Creditor rights, collateral reuse, and credit supply * , **

• 成果类型: Article
• 署名作者: Lewis, Brittany Almquist
• 署名单位: Washington University (WUSTL)
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2023.06.001
• 发表日期: 2023
• 页码: 451-472
• 关键词: REPO; Creditor rights; Rehypothecation; Money multiplier; BAPCPA

摘要

Securities dealers receive mortgages as collateral for credit lines provided to mortgage companies and reuse the same collateral to borrow money. Exploiting the 2005 BAPCPA rule change, which granted mortgage collateral preferred bankruptcy treatment, I find that strengthening creditor rights increases dealers' collateral reuse. Increasing collateral reuse creates a money multiplier that increases credit supply. Using a novel dataset linking deal-ers to the mortgage companies they fund reveals that post-BAPCPA, dealers supply ad-ditional credit to mortgage companies by increasing credit lines and relaxing restrictions on collateral securing them. In response, mortgage companies increase origination volume and shift into riskier products.& COPY; 2023 The Author. Published by Elsevier B.V. This is an open access article under the CC BY license ( http://creativecommons.org/licenses/by/4.0/ )