Download PDF Introduction In 2022, rates traders have had to navigate a landscape of deteriorating liquidity in sovereign debt markets. Over the past few years, there have been multiple episodes of severe illiquidity in US Treasuries and related markets. Firstly, US repo rates spiked in September 2019, with intraday secured Read more…
In mid-September, there has been a liquidity crisis in the money market of secured overnight borrowing. We have analyzed this in an article published one month ago, headed “Liquidity Squeeze: What is the Repo-Scarcity Premium?”. Since then, the Federal Reserve proceeded to inject more than 230 billion over the period Read more…
Introduction Often overlooked and easily dismissed as a basic collateralised loan, repos (the short form for repurchase agreement) are much more. In fact, well-functioning (and possibly liquid) repos market is essential for the stability and efficiency of the “proper” securities markets. These is why we have defined them as the Read more…