Fitch Ratings: Developments in US Federal Reserve tapering and financial regulation will weigh on the US tri-party repo market again in 2014, Fitch Ratings says. The US tri-party repo market dropped USD257bn or 14% in 2013, largely as interest rate rises and regulation influenced volumes. Much will depend on how interest rates move and how banks adjust to the Basel III leverage ratio finalised on Sunday.
Read the full statement here.