reverse repo

Reverse Repo Changes Parameters

By Jeffrey P. Snider|2013-09-30T14:42:25-04:00September 30th, 2013|Markets|

The Federal Reserve continues to test its Fixed Rate Reverse Repo program, where it “borrows” currency from the banking system collateralized by the UST’s in its immense SOMA portfolio. These reverse repo “tests” may continue until January 29, 2014 (at least under current authorizations). Because they are fixed rate, full allotment, the Fed had set $500mm maximum bid amounts for [...]

Reverse Repo Revisit

By Jeffrey P. Snider|2013-09-24T10:35:53-04:00September 24th, 2013|Markets|

Yesterday the Fed conducted the first test of its newly-minted Fixed-Rate Reverse Repo program. The auction drew $11.809 billion in bids (all accepted, thus the “fixed rate” rather than “fixed allotment”) at 0.01%. Since this is a reverse repo, the Fed is “borrowing” cash from the system, collateralized by the UST’s in its SOMA holdings. Most commentary continues to focus [...]

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