Special Repo

Deja Vu: Treasury Shorts Meet Treasury Shortages

By Jeffrey P. Snider|2021-03-09T18:37:14-05:00March 9th, 2021|Bonds, Currencies, Economy, Federal Reserve/Monetary Policy, Markets|

Investors like to short bonds, even Treasuries, as much as they might stocks and their ilk. It should be no surprise that profit-maximizing speculators will seek the best risk-adjusted returns wherever and whenever they might perceive them. If one, or a whole bunch, has to first “borrow” a security the one doesn’t own in order to sell something at a [...]

Repo Rates, Swap Spreads, And A More Distant Fed Exit

By Jeffrey P. Snider|2012-11-26T16:38:36-05:00November 26th, 2012|Markets|

Joe Calhoun recently noticed a bit of a structural shift taking place in the repo market, and he was right to point out the Fed’s role in the process. QE 3 has caused some of the usual “unforeseen” and unintended consequences that ripple through wholesale money markets. I have been highlighting a related drop in swap spreads, particularly the 10 [...]

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