A client rightly pointed out a factual error we made in our report issued today on the Fed’s Reverse Repo Facility. The error does not impact our final argument but does impact one page of the discussion and one table.
In our report we said that some primary dealers were not also approved counterparties to the Fed’s reverse repo program. That was incorrect. According to current text on the Fed’s website:
“To prepare for the potential need to conduct large-scale reverse repurchase agreement transactions, the Federal Reserve Bank of New York is developing arrangements with an expanded set of counterparties with whom it can conduct these transactions. These counterparties are in addition to the existing set of Primary Dealer counterparties with whom the Federal Reserve can already conduct reverse repurchase agreements.”
We clearly did not see this at the time of our data collection, whether due to our oversight or various updates to the text. Finadium research report readers will see that this affects Page 17 and Exhibit 7 of the final report.
We apologize for our error. We strive to get our facts right.