Rehypothecation Risks: Loaning the Same Corporate Share Ten Times

The hidden plumbing of Wall Street is built on a high-velocity illusion. Every day, global prime brokerages systematically reuse a single corporate share or sovereign bond multiple times to secure disparate overnight liabilities. This practice, known as rehypothecation, fuels the shadow banking engine but simultaneously creates a hyper-connected network of phantom assets. When market volatility ...