Insights Issues in the Repo Market, Explained

David W. Rossmiller

Nov 21, 2019

Highlights

  • Recent turmoil in the repo markets has led the Federal Reserve to take steps to boost liquidity to the financial system.
  • Issues arose as bank reserves became squeezed, resulting in too many financial institutions chasing too few available funds.
  • In our view, the Fed should continue to expand its balance sheet a bit more in order to safeguard well-functioning repo markets.

 

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David Rossmiller
Head of Fixed Income
David is responsible for overseeing fixed-income investment strategy, research, implementation, and communication.