Liberty Street — Leverage Dominion Arbitrage
Our prove suggests that banks were arbitraging the SLR (and eSLR) dominion past times shifting from safer assets toward riskier, higher-yielding ones. Evidence from other studies nosotros discuss quest to the same postulate past times banks or dealers amongst portfolios heavily weighted toward safe, low-yield assets equally business office of their job concern models. Policymakers are aware of this regulatory arbitrage in addition to are addressing it.FRBNY — Liberty Street Economics
Leverage Rule Arbitrage
Dong Beom Choi, Michael Holcomb, in addition to Donald P. Morgan
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