Securitized Banking and the Run on Repo

  title={Securitized Banking and the Run on Repo},
  author={Gary B. Gorton and Andrew Metrick},
  journal={International Center for Finance at Yale School of Management},
The Panic of 2007-2008 was a run on the sale and repurchase market (the “repo” market), which is a very large, short-term market that provides financing for a wide range of securitization activities and financial institutions. Repo transactions are collateralized, frequently with securitized bonds. We refer to the combination of securitization plus repo finance as “securitized banking”, and argue that these activities were at the nexus of the crisis. We use a novel data set that includes credit… 

Securitized banking, procyclical bank leverage, and financial instability

  • H. Park
  • Economics
    Structural Change and Economic Dynamics
  • 2019

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