NCCBR participants are generally subject to regulations and balance sheet constraints - so don't think that null/negative haircuts means the collateral can be rehypothecated infinitely these bilateral arrangements is where financial institutions manage their liquidity needs

Illya Gerasymchuk 2025-09-06 00:00

NCCBR users are mostly institutions part of the financial market infrastructure - such as dealers and hedge funds they use NCCBR to manage their balance sheets and regulatory obligations. so a high need for Treasury collateral may drive the the haircuts negative