Why does too much collaterals in the money market push the short yield down?

[imthekingoftheworld]

A Lot of Red Flags in the Bond Market: HSBC’s Major

from 2:29 to 3:00

[saurabh03121992]

Plenty of Collateral reduces risk from the lenders perspective which in turn puts downward pressure on yields to reflect the low risk. The “default premium” goes down which brings down the yield.