01871cas a2200265 a 4500 AALejournalIMF005693 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451871906 1018-5941 BD-DhAAL BD-DhAAL Aitken, James. Deleveraging After Lehman : Evidence From Reduced Rehypothecation / James Aitken, Manmohan Singh. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (13 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Rehypothecation is the practice that allows collateral posted by, say, a hedge fund to their prime broker to be used again as collateral by that prime broker for its own funding. In the United Kingdom, such use of a customer's assets by a prime broker can be for an unlimited amount of the customer's assets. And moreover, there are no customer protection rules (such as in the United States under the Securities Act of 1933). The paper shows evidence that, following Lehman's bankruptcy, the extent of rehypothecation has declined substantially, in part because investment firms fear losing collateral if their prime broker becomes insolvent. While less rehypothecation reduces counterparty risk in the system, it also reduces market liquidity. Mode of access: Internet United States imf Singh, Manmohan. IMF Working Papers; Working Paper ; No. 2009/042 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/042/001.2009.issue-042-en.xml IMF e-Library