What A Collateral Shortage Looks Like

Discover the Hidden Crisis of 2022: Dive into the untold story of last year's significant collateral shortage and its impact on global markets – a revelation by Isabel Schnabel from the ECB.

Unravel the Repo Rate Mystery: Learn how the fall in General Collateral repo rates signaled a desperate scramble for German collateral, and what this meant for the banking sector.

Yield Dynamics Decoded: Explore the surprising drop in German bond yields amidst soaring sovereign yields, and understand the intense demand for collateral that drove this anomaly.

The Ripple Effects of Collateral Scarcity: Uncover how a shortage in collateral led to major market shifts, including banks bidding for US$ funds, and its overlooked connection to the March banking crisis.