-
Repo Rates Spike: Are Lessons Of The 2019 Funding Crisis Being Heeded?
Tuesday, December 5, 2023 - 1:47pm | 524The U.S. repo market has come under the spotlight in the past couple of days as surging short-term interest rates are causing some stress for overnight funding on Wall Street, reminiscent of the 2019 funding crisis. A repo — or, to give its full name, a repurchase agreement — is an overnight trade...
-
European Repo Demonstrates Its Resilience
Monday, April 27, 2020 - 2:21pm | 765The European repo market has held up well amid the initial volatility created by the economic slowdown caused by COVID-19, according to a new report issued by the International Capital Markets Association (ICMA). Activity on European repo has increased in recent weeks, the ICMA notes. CME...
-
The Repo Market Is So Broken That The Fed Wants To Change It
Tuesday, January 14, 2020 - 4:23pm | 621Illiquidity in the U.S. repo market spooked investors in the second half of 2019, and the U.S. Federal Reserve is considering a major policy change that could help remedy the situation. However, the potential changes could come with some major political fallout. What Is The Repo Market? The term...
-
Sweden's Riksbank Becomes First Central Bank To Exit Negative Repo Rates
Thursday, December 19, 2019 - 7:20am | 332Sveriges Riksbank, the central bank of Sweden, on Thursday, increased the Repo rate from -0.25% to zero. What Happened "Developments since the monetary policy meeting in October have on the whole been as the Riksbank expected. The economic prospects and outlook for inflation are largely...