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This paper provides a quantitative account of the tri-party repo market during the recent financial crisis. Using data from July 2008 to January 2010, we show that the level of haircuts and the amount of funding were surprisingly stable in this market. The stability of the haircuts contrasts with evidence from the bilateral repo market, where, as shown by Gorton and Metrick (2011), haircuts increased sharply. During the crisis, adjustments in the volume of funding to dealers were not gradual; instead, the amount of funding in the tri-party repo market can decrease precipitously. Our findings suggest that runs in the triparty repo market resemble traditional bank runs. -- tri-party repo, wholesale funding, short-term funding
This paper provides a descriptive and quantitative account of the tri-party repo market before the reforms proposed in 2010 by the Task Force on Tri-Party Repo Infrastructure (Task Force 2010). We provide an extensive description of the mechanics of this market. We also use data from July 2008 to early 2010 to document quantitative features of he market. We find that both the level of haircuts and the amount of funding were surprisingly stable in this market. The stability of the margins is in contrast to evidence from other repo markets. Perhaps surprisingly, the data reveal relatively few signs of stress in the market for dealers other than Lehman Brothers, on which we provide some evidence. This suggests that runs in the tri-party repo market may occur precipitously, like traditional bank runs, rather than manifest themselves as large increases in margins. -- Tri-party repo ; wholesale funding ; short-term funding
This paper provides a quantitative account of the tri-party repo market during the recent financial crisis. Using data from July 2008 to January 2010, we show that the level of haircuts and the amount of funding were surprisingly stable in this market. The stability of the haircuts contrasts with evidence from the bilateral repo market, where, as shown by Gorton and Metrick (2011), haircuts increased sharply. During the crisis, adjustments in the volume of funding to dealers were not gradual; instead, the amount of funding in the tri-party repo market can decrease precipitously. Our findings suggest that runs in the tri-party repo market resemble traditional bank runs
Copeland, Adam M.; Martin, Antoine; Walker, Michael; 2012 Availability: Link Link Citations: 8 (based on OpenCitations)
Total Citations: 0 h Index: 0 i10: 0 Source: CitEc
The information on the author is retrieved from: Entity Facts (by DNB = German National Library data service), DBPedia and Wikidata
Max McKeown
Dr.
Alternative spellings: Max Mc Keown Max Mc Keown Max MacKeown Max Mac Keown
Max McKeown (born in London, October 1969) is an English writer, consultant, and researcher specialising in innovation strategy, leadership and culture. He has written six influential books and conducts research with Warwick Business School (Young, 2008). He is a fellow of the RSA. He served on the advisory board for the Rollins Center for eBusiness. He earned his master's degree in Business Administration and PhD from the Warwick Business School under the supervision of Professor David Wilson and Professor Sotirios Paroutis, who was in turn supervised by Andrew Pettigrew. McKeown is an advocate of innovation culture. He also argues that failure can be positive for progress if it is viewed as part of learning (Chynoweth, 2010). He makes a distinction between change and progress, "change is inevitable but progress is not" (McKeown, 2008). His work described how 'creativity doesn't come from hiring the right people, but from creating the right conditions' (Buchanan & Huczynski, 2013, McKeown, 2008). He also argues that "reacting matters as much as planning" and that strategy is effective only when it shapes events in the real world (McKeown, 2011). In Adaptability, a contribution to innovation literature he sets out four levels of adaptation that social groups can achieve. Collapsing is the end of the social group. Coping is survival 'without prosperity, pride or joy'. Thriving provides benefits that are worthwhile and desirable. The final level, Transcending overcomes the limits of the old system, allowing more for everyone. The three step model of Adaptability (RUN) involves (1) Recognition of required adaptation (2) Understanding of adaptation required (3) Necessary adaptation. He describes High Adaptability (Killer) Cultures – or HACKs – as supportive of self-renewal that nurture and develop the talent of what he refers to as High Adaptability, High Achievement individuals – or HAHAs – who learn to become stronger when faced with adversity as compared to Low Adaptability, Low Achievement individuals – or LALAs – who become increasingly inflexible when put under pressure (McKeown, 2013). Social groups, and individuals, attempt adaptation following three steps: First, recognition of the need to adapt. Second, understanding of the necessary adaptation. And third, adapting as necessary. In most societies there is a mix of different systems at different levels of adaptation fit. Many efforts to reach higher levels of adaptation fail because one or more of the steps is not completely successfully. People may fail to understand change is necessary, or not understand what kind of change is necessary, or simply avoid making those changes. In The Strategy Book, one of the winners at the Chartered Institute of Management's Book of the Year Awards 2013 (Atherton, 2013), argues that "strategy is about shaping the future" (McKeown, 2011) and approaches strategy as something that people do, both as style of thinking and the combination of actions taken along with their consequences. He describes how individuals, and groups, can increase their ability to think and act strategically, by finding the best route to desirable ends with available means. He wrote the book to help real people use strategy partly in response to a call to action from Richard Whittington, writing about school of strategic management research known as Strategy-In-Practice (Whittington, 2002). In 2014, Japanese, Swedish and Portuguese translations will be published. (Source: DBPedia)
Max McKeown (born in London, October 1969) is an English writer, consultant, and researcher specialising in innovation strategy, leadership and culture. He has written six influential books and conducts research with Warwick Business School (Young, 2008). He is a fellow of the RSA. He served on the advisory board for the Rollins Center for eBusiness. He earned his master's degree in Business Administration and PhD from the Warwick Business School under the supervision of Professor David Wilson and Professor Sotirios Paroutis, who was in turn supervised by Andrew Pettigrew. McKeown is an advocate of innovation culture. He also argues that failure can be positive for progress if it is viewed as part of learning (Chynoweth, 2010). He makes a distinction between change and progress, "change is inevitable but progress is not" (McKeown, 2008). His work described how 'creativity doesn't come from hiring the right people, but from creating the right conditions' (Buchanan & Huczynski, 2013, McKeown, 2008). He also argues that "reacting matters as much as planning" and that strategy is effective only when it shapes events in the real world (McKeown, 2011). In Adaptability, a contribution to innovation literature he sets out four levels of adaptation that social groups can achieve. Collapsing is the end of the social group. Coping is survival 'without prosperity, pride or joy'. Thriving provides benefits that are worthwhile and desirable. The final level, Transcending overcomes the limits of the old system, allowing more for everyone. The three step model of Adaptability (RUN) involves (1) Recognition of required adaptation (2) Understanding of adaptation required (3) Necessary adaptation. He describes High Adaptability (Killer) Cultures – or HACKs – as supportive of self-renewal that nurture and develop the talent of what he refers to as High Adaptability, High Achievement individuals – or HAHAs – who learn to become stronger when faced with adversity as compared to Low Adaptability, Low Achievement individuals – or LALAs – who become increasingly inflexible when put under pressure (McKeown, 2013). Social groups, and individuals, attempt adaptation following three steps: First, recognition of the need to adapt. Second, understanding of the necessary adaptation. And third, adapting as necessary. In most societies there is a mix of different systems at different levels of adaptation fit. Many efforts to reach higher levels of adaptation fail because one or more of the steps is not completely successfully. People may fail to understand change is necessary, or not understand what kind of change is necessary, or simply avoid making those changes. In The Strategy Book, one of the winners at the Chartered Institute of Management's Book of the Year Awards 2013 (Atherton, 2013), argues that "strategy is about shaping the future" (McKeown, 2011) and approaches strategy as something that people do, both as style of thinking and the combination of actions taken along with their consequences. He describes how individuals, and groups, can increase their ability to think and act strategically, by finding the best route to desirable ends with available means. He wrote the book to help real people use strategy partly in response to a call to action from Richard Whittington, writing about school of strategic management research known as Strategy-In-Practice (Whittington, 2002). In 2014, Japanese, Swedish and Portuguese translations will be published. (Source: DBPedia)