A new view on Synthetic Risk Transfers, repo and arbitrage financing for trading strategies

A recent research paper posited that the collapse of Silicon Valley Bank (SVB) highlights the “growing transformation of deposit-taking institutions into synthetic hedge funds, blending private equity-style banking with hedge fund-like trading strategies”. We speak with Elham Saeidinezhad, the paper’s author and term assistant professor of Economics at Barnard College, Columbia University, about how repo markets fit into her observations.

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