Tag Archives: Marco Macchiavelli

Access to Safe Assets and Financial Stability

By | November 11, 2019

Courtesy of Marco Macchiavelli In September 2013, the Federal Reserve (Fed) introduced the Overnight Reverse Repurchase (ONRRP) facility to improve its control over short-term interest rates (Frost et al. 2015). To achieve this goal, the Fed offers safe assets in the form of overnight reverse repos to a broad range of market participants, including money… Read More »

The Impact of Liquidity Regulation on Broker-Dealer Stability

By | October 17, 2019

Courtesy of Marco Macchiavelli and Luke Pettit At the peak of the cycle in 2006, broker-dealers (dealers hereafter) were involved in originating, distributing and financing mortgage-related instruments, which exposed them to significant risks at the turn of the housing cycle in early 2007. To make things worse, they were financing a significant portion of these… Read More »