Kollateralnetz
Kollateralnetz is a term used in economics and finance to describe a network of collateral. This concept is particularly relevant in over-the-counter (OTC) derivatives markets and secured lending. In essence, it refers to the interconnectedness of collateral posted by different parties to a financial transaction. When an entity posts collateral for one transaction, that same collateral may be used to cover potential exposures in other, related transactions.
The development of central counterparties (CCPs) has significantly impacted the structure of collateral networks. CCPs act
However, the interconnectedness also creates potential systemic risks. If a major participant in the collateral network