Illya Gerasymchuk
Entrepreneur / Engineer
to estimate the maximum liquidity that can be added by a bond divide the market value by its haircut (e.g. effective repo haircut on that bond)
collateral gets reused/rehypothecated, reserves don't dealers re-pledge/re-use Treasuries, e.g. through repo and reverse repo. thus, the financing capacity of Treasury bills, notes and bonds exceeds their market value