Cash Providers: Asset Dissemination over Intermediation Chains
type: Distribution
access URL: https://shs.hal.science/halshs-00959468
format: HTML
issued: 2026-05-06T01:01:53.802534
modified: 2026-05-06T01:01:53.759056

test_moissonnage_selune
type: Agent

Cash Providers: Asset Dissemination over Intermediation Chains
type: Dataset
contact point: Organization
  fn: CCSD
keyword: collateral
keyword: jel-c---mathematical-and-quantitative-methodscc7---game-theory-and-bargaining-theorycc7c78---b
keyword: preprints-working-papers-
keyword: intermediation-chains
keyword: otc-markets
keyword: shsecohumanities-and-social-scienceseconomics-and-finance
keyword: infoeu-reposemanticspreprint
keyword: shadow-banking
landing page: https://shs.hal.science/halshs-00959468
description: Many financial assets are disseminated to final investors via chains of over-the-counter transactions between intermediaries (investors or dealers). We build a model where an agent buying some units of the asset can offer to sell part of them to an OTC partner. Intermediation chains are endogenously formed and impact the asset's market liquidity, its issuance, and who ultimately holds the asset. An increase in the intermediaries' funding liquidity (e.g. a lower haircut on the asset) makes intermediation less necessary but also makes it cheaper to issue the asset, increasing the total volume to be distributed and the number of intermediaries and agents holding the asset. We derive implications on liquidity in OTC markets, the dissemination of ''toxic" assets and the collateral policy of central banks and CCPs.
issued: 2026-05-06T01:01:53.776053
language: en
modified: 2026-05-06T01:01:53.776057