Fed staff report: Repo over the Financial Crisis

By Adam Copeland and Antoine Martin

This paper uses new data to provide a comprehensive view of repo activity during the 2007-09 financial crisis for the first time. We show that activity declined much more in the bilateral segment of the market than in the tri-party segment. Surprisingly, we find that a large share of the decline in activity is driven by repos backed by Treasury securities. Further, a disproportionate share of the decline in repo activity is connected to securities dealer’s market-making activity in Treasury securities. In particular, the evidence suggests that at least part of the decline is not driven by clients pulling away from securities dealers because of counterparty credit concerns.

The full report is available at https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr996.pdf

Related Posts

Previous Post
Securitize Markets launches tokenized S&P index funds
Next Post
US regulators propose 5th major change for securities finance transparency this year; Finadium announces client briefing on January 11, 2022

Related Posts

Fill out this field
Fill out this field
Please enter a valid email address.


Reset password

Create an account