The Global Financial crisis 14 years ago ushered in a new era of attempting to understand the pipes of the global financial system – especially incorporating the shadow banking world.
One big node point is pledged collateral and so called collateral velocity. The world expert on this is IMF senior economist Manmohan Singh.
This latest post on FT AV by Singh is absolutely worth a read to understand what is going on now.
These charts are one part of the picture – showing how pledge collateral has grown but also moved around.
“As you might expect, a lot has changed since 2007, with the disappearance of Lehman Brothers and Bear Stearns, the reshuffling of business models by UBS, Credit Suisse and Deutsche Bank, and the rise of JPMorgan and Barclays.“
