A fascinating article appeared in the NY Fed’s March 2014 (Volume 20, Number 2) Economic Policy Review. “Matching Collateral Supply and Financing Demands in Dealer Banks” by Adam Kirk, James McAndrews, Parinitha Sastry, and Phillip Weed. It touched on many interesting topics. We will look at their take on collateral efficiency and focus on what they say about repo netting. A summary of the article also appeared in the April 1st Liberty Street Economics blog.