1 dataset found
  1. What Drives U.S. Treasury Re-use?

    • catalog.data.gov
    • gimi9.com
    • +1more
    Updated Dec 18, 2024
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    Board of Governors of the Federal Reserve System (2024). What Drives U.S. Treasury Re-use? [Dataset]. https://catalog.data.gov/dataset/what-drives-u-s-treasury-re-use
    Explore at:
    Dataset updated
    Dec 18, 2024
    Dataset provided by
    Federal Reserve Systemhttp://www.federalreserve.gov/
    Federal Reserve Board of Governors
    Description

    Based on confidential supervisory data, this dataset estimates the degree of collateral re-use at the dealer level through their collateral multiplier: the ratio between a dealer's total secured funding and their outright holdings financed through secured funding. Treasury re-use increases as the supply of available securities decreases, especially when supply declines due to Federal Reserve asset purchases. Non-U.S. dealers' re-use increases when profits from intermediating cash are high, U.S. dealers' re-use increases when demand to source on-the-run Treasuries is high, and both types of dealers' re-use can alleviate safe asset scarcity. Finally, there was a sharp drop in Treasury re-use at the onset of the COVID-19 pandemic, with a subsequent reversal after the Federal Reserve's intervention to support market functioning.

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Share
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TwitterTwitter
Email
Click to copy link
Link copied
Close
Cite
Board of Governors of the Federal Reserve System (2024). What Drives U.S. Treasury Re-use? [Dataset]. https://catalog.data.gov/dataset/what-drives-u-s-treasury-re-use
Organization logoOrganization logo

What Drives U.S. Treasury Re-use?

Explore at:
Dataset updated
Dec 18, 2024
Dataset provided by
Federal Reserve Systemhttp://www.federalreserve.gov/
Federal Reserve Board of Governors
Description

Based on confidential supervisory data, this dataset estimates the degree of collateral re-use at the dealer level through their collateral multiplier: the ratio between a dealer's total secured funding and their outright holdings financed through secured funding. Treasury re-use increases as the supply of available securities decreases, especially when supply declines due to Federal Reserve asset purchases. Non-U.S. dealers' re-use increases when profits from intermediating cash are high, U.S. dealers' re-use increases when demand to source on-the-run Treasuries is high, and both types of dealers' re-use can alleviate safe asset scarcity. Finally, there was a sharp drop in Treasury re-use at the onset of the COVID-19 pandemic, with a subsequent reversal after the Federal Reserve's intervention to support market functioning.

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