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RBA Glossary definition for securities

securities – A financial instrument which represents a claim over real assets or a future income stream. Such instruments are usually tradeable. Examples of securities include bonds, bills of exchange, promissory notes, certificates of deposit and shares.

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Liquidity Support through Securities Purchases

9 Oct 2019 RDP 2019-10
Nicholas Garvin
S. (b), the authority purchases enough securities to ensure the market price is 1–m. ... Under a securities purchase policy, the authority cannot credibly induce an equilibrium at or below.
https://www.rba.gov.au/publications/rdp/2019/2019-10/liquidity-support-through-securities-purchases.html

Model Generalisations and Extensions

9 Oct 2019 RDP 2019-10
Nicholas Garvin
Specifically, for equal L. D. > 0 in each securities market, market illiquidity is ranked. ... but if these are not sufficient, additionally provides securities whose sales generate the largest losses.
https://www.rba.gov.au/publications/rdp/2019/2019-10/model-generalisations-and-extensions.html

Emergency Liquidity Injections

10 Oct 2019 RDP 2019-10
Nicholas Garvin
The mitigated securities price depression, relative to an unsecured lending policy, counteracts the effects of fire sale externalities. ... This reduces banks' losses on illiquid securities without incentivising more liquidity risk-taking.
https://www.rba.gov.au/publications/rdp/2019/2019-10.html

Emergency Liquidity Injections

1 Oct 2019 RDP 2019-10
Nicholas Garvin
The characteristics of securities buyers imply. 0. m. <. 1. for any demand schedule. ... m. P. (. b. ,. s. i. ). , acknowledging that banks' date 1 securities selling S.
https://www.rba.gov.au/publications/rdp/2019/2019-10/full.html

Conclusion

9 Oct 2019 RDP 2019-10
Nicholas Garvin
A secured lending policy can mitigate banks' fire selling of securities, because banks must use those securities as collateral for borrowing from the authority. ... Accordingly, relative to an unsecured lending policy, a secured lending policy can reduce
https://www.rba.gov.au/publications/rdp/2019/2019-10/conclusion.html

The Model

9 Oct 2019 RDP 2019-10
Nicholas Garvin
The characteristics of securities buyers imply. 0. m. <. 1. for any demand schedule. ... m. P. (. b. ,. s. i. ). , acknowledging that banks' date 1 securities selling S.
https://www.rba.gov.au/publications/rdp/2019/2019-10/the-model.html

Appendix A: Emergency Liquidity Injection Policies in Europe and the United States

9 Oct 2019 RDP 2019-10
Nicholas Garvin
The TSLF, also introduced in March 2008, made one-month loans of Treasury securities to primary dealers, collateralised by other securities, through single price auctions. ... In mid September 2008, the Fed widened its acceptable collateral for the PDCF
https://www.rba.gov.au/publications/rdp/2019/2019-10/appendix-a.html

Emergency Liquidity Injections

1 Oct 2019 RDP 2019-10
Nicholas Garvin
Research Discussion Paper – RDP 2019-10 Emergency Liquidity Injections. Nicholas Garvin. October 2019. 2,094. KB. The views presented here do not necessarily represent those of the Reserve Bank of Australia. Any errors are my own. For help with
https://www.rba.gov.au/publications/rdp/2019/2019-10/sections.html

Appendix B: Proofs

9 Oct 2019 RDP 2019-10
Nicholas Garvin
γ. b. exogenous liquidation in the securities market, where. γ. is arbitrarily small, and r. ... Fix symmetric s > 0 across both policies. For low b, securities liquidation satisfies L.
https://www.rba.gov.au/publications/rdp/2019/2019-10/appendix-b.html

Introduction

9 Oct 2019 RDP 2019-10
Nicholas Garvin
Capital injections and secondary market securities purchases were also relied upon to varying degrees. ... In other words, collateral obligations force banks to treat emergency borrowing and securities sales as substitutes.
https://www.rba.gov.au/publications/rdp/2019/2019-10/introduction.html