TY - THES ID - 134545876 TI - The impact of TLTRO-III condition easing on covered bond issuance: evidence from the Euro Area AU - Houvenaghel, Emile AU - Scopelliti, Alessandro Diego AU - KU Leuven. Faculteit Economie en Bedrijfswetenschappen. Opleiding Master in de handelswetenschappen (Brussel) PY - 2023 PB - Leuven KU Leuven. Faculteit Economie en Bedrijfswetenschappen DB - UniCat UR - https://www.unicat.be/uniCat?func=search&query=sysid:134545876 AB - This paper examines the impact of easing TLTRO-III conditions on covered bond issuance. First, the paper provides an overview of the Central Bank as liquidity provider in the Eurozone. There is a strong focus on the Eurosystem collateral framework and unconventional monetary policies. Next, I discuss the condition easing of TLTRO-III in 2020 and the developments in the covered bond market. This section provides more clarity regarding the shift of publicly issued covered bonds to retained covered bonds, in order to pledge those assets as collateral at the ECB. These findings are then linked to regulatory incentives for banks, thanks to liquidity transformation. Finally, a logistic regression is used to measure the effect of the total own-use haircut and bank liquidity on retention behaviour. The results show that a lower own-use haircut increases the odds of being retained, and that more liquid banks retain less covered bonds than less liquid banks. ER -