Memories of 2a7 Fade, But Commercial Paper Remains Relevant Anyway

By |2017-01-20T18:22:17-05:00January 20th, 2017|Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

If you are an enterprising financial firm with spare cash toward the end of the business day, you have several options for it. Primary among them is the Fed’s Reverse Repo (RRP) desk which will pay you 50 bps interest with your cash secured by both the reputation of the Federal Reserve as well as UST collateral. Given that option, [...]