4min chapter

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Maroon Macro: All They Told You About Money Printing is Wrong

Market Depth

CHAPTER

What Is the Difference Between Prestein and Non Perstein Collateral?

There's two different major categories of collateral, and that is prestin al and non persten. At different times in the market cycle, different types of non perseding collateral have different levels of acceptability. The wayt this is controlled is through something clled hair cuts. A lower centage haircut essentially means that a given security has less credit risk or less liquidity risk.

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