00000cam 2200000zi 4500 9.962241 CaOODSP 20260427120358 m o d f cr cn||||||||| 260427e20260306oncad ob f000 0 eng d CaOODSP eng rda CaOODSP FB3-5/2026-9E-PDF Grimaldi, Marianna, author. The usage of security lending facilities under unconventional monetary policy : evidence from Sweden / Marianna Blix Grimaldi, David Vestin, Fabienne Schneider. [Ottawa] : Bank of Canada = Banque du Canada, March 6, 2026. ©2026 1 online resource (64 pages) : graphs, figure. text txt rdacontent computer c rdamedia online resource cr rdacarrier Staff working paper = Document de travail du personnel, 1701-9397 ; 2026-9 Cover title. Includes bibliographical references (pages 45-46). "This paper examines the interaction between quantitative easing (QE) and the securities lending facility (SLF) using a detailed dataset on Riksbank QE purchases, Swedish DMO SLF transactions and OTC repo deals. A theoretical model further shows how excess demand for assets and search frictions shift the SLF from a backstop to a first-resort tool. Empirically and theoretically, we find that QE expansion is closely linked to higher SLF use. Narrowing spreads between SLF yields and market repo rates make the SLF yield a floor for secured lending, weakening ties to monetary policy benchmarks and potentially altering its transmission. QE announcements also increase SLF usage, raising moral hazard concerns. Theoretically, QE strengthens cash-borrowing dealers’ bargaining position and may reduce reliance on the repo market, with implications for market liquidity"--Abstract. Quantitative easing (Monetary policy) Econometric models. Securities lending. Assouplissement quantitatif (Politique monétaire) Modèles économétriques. Prêts-emprunts de titres. Bank of Canada, issuing body. Staff working paper (Bank of Canada) 1701-9397 ; 2026-9. (CaOODSP)9.806221 PDF 1.46 MB https://publications.gc.ca/collections/collection_2026/banque-bank-canada/FB3-5-2026-9-eng.pdf