- Every few quarters, the repurchase (repo) market seems to experience a new event, with the ensuing headlines fostering a renewed awareness of the importance of this keystone of our financial system.
- One of the safety valves again being utilized by investors during this unprecedented era of monetary policy is the Federal Reserve’s reverse repo facility (RRP).
- PIMCO’s short-term desk believes that exploding RRP volumes do not signal stress but could exacerbate a future stress event once the flood of cash on the front end subsides.
For further details see:
Repressed Repo Rates: Sifting Through The Noise