The Repo Market: What It Is, and Why Everyone Is Talking About It Again

  • 📰 WSJ
  • ⏱ Reading Time:
  • 19 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 63%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Traders are scrambling to figure out what caused an unexpected rate spike in a vital but murky part of the financial system—the repo market

Traders are scrambling to discern what caused an unexpected rate spike in a vital but murky part of the financial system—the market for repurchase agreements, known as repo.

What is the repo market? A repo is when one party lends out cash in exchange for a roughly equivalent value of securities, often Treasury notes. This market exists to allow companies that own lots of securities but are short on cash to cheaply borrow money. And it allows parties with lots of cash to earn a small return while taking little risk, because...

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 98. in MY
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Regardless of the reason it happened in the US, it has been happening elsewhere with the US dollar shortage, stunting trade and denting demand given the over reliance on it globally.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines